Falcon Co., which uses an Allowance for Doubtful Accounts, had the following transactions in 2015, 2016, and 2017. (Use the income statement approach.)
2015 Dec. 31 Recorded Bad Debts Expense of $11,600.
2016 Apr. 3 Wrote off Frank Jefferson account of $4,300 as uncollectible.
June 4 Wrote off Paul Stevenson account of $2,800 as uncollectible.
2017 Aug. 5 Recovered $490 from Paul Stevenson.
a. Journalize the transactions. (The company uses the income statement approach in estimating bad debts.)
b. Journalize how Falcon Co. would record the Paul Stevenson bad debt situation if the direct write-off method were used.