E9-20 Journalizing transactions using the direct write-off method versus the allowance method During August 2015, Bingham Company recorded the following:

• Sales of $75,600 ($66,000 on account; $9,600 for cash).

• Collections on account, $53,200.

• Write-offs of uncollectible receivables, $1,120.

• Recovery of receivable previously written off, $800.

Requirements 1. Journalize Bingham’s transactions during August 2015, assuming Bingham uses the direct-write off method.

2. Journalize Bingham’s transactions during August 2015, assuming Bingham uses the allowance method.