Blue Spruce Ltd. has an April 30 year end. On April 30, 2021, Blue Spruces controller determined that 3% of its $210,000 account receivable balance would likely become uncollectible. The pre-closing credit balance in the allowance for doubtful accounts was $2,500. On June 5, 2021, Blue Spruces controller wrote off a $2,000 account that was owed by Bright Construction after determining that this amount was not likely to be received. On October 30, 2021, after taking legal action against Bright Construction, Blue Spruce received 25% of the previously written-off amount.

the necessary journal entries to record the above transactions. Assuming that Blue Spruce uses the allowance method for accounting for impairments of accounts receivable.

Date Account Titles and Explanation Debit Credit (To reinstate the account written-off and now determined to be collectible) Activate Win Go to Settings to (Collection on account)