Entries for Bad Debt Expense under the Direct Write$-$Off and Allowance Methods

The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December $31$:

Apr. $13.$ Wrote off account of Dean Sheppard, $$8,450.$

May $15.$ Received $$500$ as partial payment on the $$7,100$ account of Dan Pyle.$-$Wrote off the remaining balance as uncollectible.

July $27.$ Received $$8,450$ from Dean Sheppard, whose account had been written off on April $13.$ Reinstated the account and recorded the cash receipt.

Dec. $31.$ Wrote off the following accounts as uncollectible $($record as one journal entry$)$:

$\backslash$table$[[$Paul Chapman,$$2,225$