At the end of 2017, Cheyenne Corp. has accounts receivable of $1.4 million and an allowance for doubtful accounts of $86,000. On January 16, 2018, Cheyenne determined that its $20,000 receivable from Oriole Company will not be collected, and management has authorized its write off. On January 31, 2018, Cheyenne received notification that the company will be receiving $0.15 for every $1.00 of accounts receivable relating to Ivanhoe Company The company had previously written off 100% of the amount due from Ivanhoe ($55,000).

QUESTION: Prepare the journal entry for Cheyenne Corp. to write off the Oriole receivable and any journal entry necessary to reflect the notice regarding Ivanhoe Company

Part A) To write off the Oriole accounts:

Part B) Ivanhoe Company reinstatement of partial accounts receivable for amounts previously written off and now determined to be collectible: