The following are the transactions from Izzy Inc. concerning its allowance for doubtful accounts. 

1. Write off of accounts receivable........................$5,000 

2. Recovery of accounts previously written off......3,500 

3. Accrual for bad debt expense..............................4,400 

Assume these are the only transactions for the year. 

Instructions 

a. Prepare the journal entries to record the above transactions. 

b. Prepare the reporting relating to these transactions on a partial statement of cash flows using 

1. the direct method, 

2. the indirect method.