Carol Co., which uses an Allowance for Doubtful Accounts, had the following transactions in 2018, 2019, and 2020. (Use the income statement approach under the allowance method.)

1. Journalize the transactions. (The company uses the income statement approach in estimating Bad Debts.)

2. Journalize how Carol Co. would record the John Mason bad debts situation if the direct write-off method were used.

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2018 Dec. 31 Recorded Bad Debts Expense of $11,800. 2019 Apr. 3 Wrote off Harry Longo account of $3700 as uncollectible. June 4 Wrote off John Mason account of $3,000 as uncollectible. 2020 Aug. 5 Recovered $510 from John Mason.