The following transactions appear in the accounting records of Short Circuit Electric Company:

Dec.31 Made adjusting entry for Bad Debt Expense using the percentage of net sales method. Net sales for the year totaled $7,000, uncollectible accounts are estimated at 2 percent, and Allowance for Bad Debts has a $25 credit balance prior to adjustment.

Feb. 5 Wrote off the $100 balance of Northern Lights, a customer, because the owner filed for bankruptcy.

17 Unexpectedly received the $100 from Northern Lights. REQUIRED: Prepare the necessary journal entries using good form.