Question 7 Shelton Company uses the allowance method for estimating uncollectible accounts. January 5 Sold merchandise to Luke Ryan for $1,700, tems 1/15 April 15 Received $500 from Luke Ryan on account August 21 Wrote off as uncollectible the balance of the Luke Ryan account when he declared bankruptcy. October 5 Unexpectedly received a check for $600 from Luke Ryan. It is not felt any more will be received from Ryan Prepare journal entries to record the above transactions (Credit account titles are automatically indented when the amount is entered Date Account Titles and Explanation Debit Credit Jan. 5 Apr 15 Aug. 21 Oct. 5