M8-4 (Algo) Recording Recoveries Using the Allowance Method [LO 8-2] On December 31, 2020, Extreme Fitness has adjusted balances of $820,000 in Accounts Recelvable and $59,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectlble, so management authorizes a write-off of these accounts totaling $12,000. Required: Assume that on February 2, 2021, Extreme Fltness recelved a payment of $700 from one of the customers whose balance had been written off. Prepare the journal entrles to record this transaction. (If no entry Is required for a transaction/event, select "No Journal Entry Required" In the first account fleld.) Journal entry worksheet Record the reversal of a customer account previously written off in the amount of $700. Note: Enter debits before credits. M8-4 (Algo) Recording Recoveries Using the Allowance Method [LO 8-2] On December 31, 2020, Extreme Fltness has adjusted balances of $820,000 in Accounts Recelvable and $59,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certaln customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $12,000. Required: Assume that on February 2, 2021, Extreme Fltness recelved a payment of $700 from one of the customers whose balance had been written off. Prepare the journal entrles to record this transaction. (If no entry is requlred for a transactlon/event, select "No Journal Entry Requlred" In the first account fleld.) Journal entry worksheet Record the receipt of cash of $700 from the customer. Note: Enter debits before credits