The Austin Co., which uses an Allowance for Doubtful Accounts, had the following transactions in 2021 and 2022:

a. Journalize the transactions. (The Austin Co. uses the income statement approach to estimate bad debts.)
b. Journalize how Austin Co. would record the Mike Catuc bad debt situation if the direct write-off method had been used. Assume the bad debt was recovered on August 7, 2023.

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2021 Dec. 31 Recorded Bad Debts Expense of $12,000. 2022 Apr. 1 Wrote off Angie Ring account of $4,000 as uncollectible. June 3 Wrote off Mike Catuc account of $3,000 as uncollectible. Aug. 7 Recovered $500 from Mike Catuc.