Chapter 9, Problem S9.4SE

Collecting a receivable previously written off-direct write-off method

Gate City Cycles had trouble collecting its account receivable from Shawna Brown. On June 19, 2016, Gate City finally wrote oil Browns $700 account receivable. On December 31, Brown sent a $700 check to Gate City.

Journalize the entries required for Gate City Cycles, assuming Gate City uses, the direct write-off method.