In this exercise, we continue our accounting for Sensations Salon, Inc., from Chapter 5. Refer to the Continuing Exercise from Chapter 5. On June 15, Sensations Salon, Inc., sold 7 bottles of shampoo to Chelsie Hobart for $196 on account. On July 18, Sensations Salon, Inc., received $150 on account from Chelsie Hobart related to her June 15 purchase. On October 12, Chelsie notified Sensations Salon, Inc., that she was filing bankruptcy and that she would not be able to pay the remaining amount owed.

Requirement

Journalize the entry to record the payment from Chelsie and to record the writeoff of Chelsie's uncollectible account. Assume that Sensations Salon, Inc., uses the direct write-off method to account for uncollectible accounts?