Winey Cork Limited uses the allowance method for estimating uncollectible accounts.

Required:

Prepare journal entries to record the following transactions:

January $5$ Sold merchandise to Smith Inc for $$2,500,$ terms $\frac{n}{15}.$

January $15$ Received $$800$ from Smith Inc on account.

April $15$ Received $$700$ from Smith Inc on account

August $21$ Wrote off as uncollectible the balance of the Smith account when it declared bankruptcy.

October $5$ Unexpectedly received a cheque for $$500$ from Smith's bankruptcy trustee.