McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $3,600,000 in 2016. McKinney estimates 3.0% of its sales will be uncollectible.

At the end of the first quarter of 2017, McKinney & Co. reevaluates its receivables. McKinneys management decides that $8,700 due from Mangold Corporation will not be collectible. This amount was previously included in the allowance account.

On April 23, 2017, McKinney & Co. receives a check from Mangold Corporation for $8,700.

Required:

Prepare the journal entries for McKinney to record the collection of the account previously written off.