Entries for bad debt expense under the direct write$-$off and allowance methods

Chart of Accounts

Instructions

The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December $31$:

$\backslash$table$[[$Apr$.,13,$Wrote off account of Dean Sheppard, $$8,360.,],[$May$,15,\backslash$table$[[$Received $$470$ as partial payment on the $$7,120$ account of Dan Pyle. Wrote off the remaining balance$],[$as uncollectible.$]],],[$July$,27,\backslash$table$[[$Received $$8,360$ from Dean Sheppard, whose account had been written off on April $13.$ Reinstated the$],[$account and recorded the cash receipt.$]],],[$Dec$.,31,$Wrote off the following accounts as uncollectible $($record as one journal entry$)$:$,],[,$Paul Chapman,$$2,375$