Jacob 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 $12,300.
2016 Apr. 3 Wrote off George Lake account of $3,600 as uncollectible.
June 4 Wrote off Peter Sweet account of $2,700 as uncollectible.
2017 Aug. 5 Recovered $500 from Peter Sweet.
a. Journalize the transactions. (The company uses the income statement approach in estimating bad debts.)
b. Journalize how Jacob Co. would record the Peter Sweet bad debt situation if the direct write-off method were used.