1. Assume that the business has received notification on 15 April 2020 that a debtor owing $1,850 has declared bankruptcy. Prepare the general journal entry to write-off this account as a bad debt under each of the following methods:

(i) The direct write-off method

(ii) The allowance method

Return to the scenario outlined in part (1), assume on 22 August 2020 the debtor unexpectedly remits full payment for the previously written-off account. Prepare the general journal entry to re-establish this debt and record payment under each of the following methods:

(i) The direct write-off method

(ii) The allowance method