Handel Company Uses the Allowance Method for Estimating Uncollectible Accounts

Essay

Handel Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions:
January 5 Sold merchandise to Terry Richman for $2,000, terms n/15.
April 15 Received $600 from Terry Richman on account.
August 21 Wrote off as uncollectible the balance of the Terry Richman account when she declared bankruptcy.
October 5 Unexpectedly received a check for $300 from Terry Richman. It is not felt any more will be received from Richman