Madonna’s Music Store uses the direct write-off method in accounting for uncollectible accounts. Record the following transactions in general journal form:

20-1

May 5 Wrote off $2,360 owed by Neal Dammond, who has no assets.

July 18 Wrote off $1,255 owed by Maxine Mouse, who declared bankruptcy.

Sept. 20 Reinstated the account of Neal Dammond, which had been written off on May 5, and received $2,360 cash in full settlement.

20-2

May 11 Reinstated the account of Maxine Mouse, which had been written off in the previous year, and received $1,255 cash in full settlement.