Allied Industries uses the allowance method to account for bad debts. Record the following transactions that occurred during the year:
Feb 3 Provided $600 of services to Bill Hanson on account.
Aug 8 Wrote off Bill Hanson’s $600 account as uncollectible.
Nov 10 Unexpectedly collected $400 from Bill Hanson on the account that had been written off. Allied Industries does not expect to collect the remaining balance.