Exercise 15.5 Recording the collection of an account written off in the same year under the allowance method. LO 15-3

On April 30, 2019, Alonzo Plumbing, which uses the allowance method, decided that the $3,400 account of Ashley Madison was worthless and should be written off. On December 8, 2019, after a threatened lawsuit by Alonzo Plumbing, Ashley Madison paid the $3,400 account charged off on April 30, 2019. Prepare the entries in general journal form to reinstate Madisons account and to record the receipt of her check.

• Prepare the journal entry to reinstate Madison's account previously written off.

• Prepare the journal entry to record the collection of Madison's account.