Brief Exercise 8-5

At the end of 2015, Carpenter Co. has accounts receivable of $780,690 and an allowance for doubtful accounts of $70,620. On January 24, 2016, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $5,640. On March 4, 2016, Carpenter Co. receives payment of $5,640 in full from Megan Gray.

Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)