On March 10, Chancey, Inc., declared a \(\$ 700\) account receivable from the Gates Company as uncollectible and wrote off the account. On November 18, Chancey received a \(\$ 200\) payment on the account from Gates.

a. Assume that Chancey uses the allowance method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Gates's account.

b. Assume that Chancey uses the direct write-off method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Gates's account.

c. Assume that the payment from Gates arrives on February 5 of the following year rather than on November 18 of the current year. (1) Prepare the journal entries to record the write-off and subsequent recovery of Gates's account under the allowance method. (2) Prepare the journal entries to record the write-off and subsequent recovery of Gates's account under the direct write-off method.