Exercise 7.9 (Algo) Comparing direct write-off and allowance method entries LO P1, P2 Prepare journal entries to record the following under (a) the direct write-off method and (b) the allowance method. May 3 sa1 conpany determines that it cannot collect its accounts receivable of 32,300 from Joey company. May 21 sal cospany unexpectodiy receiven payment of $2,300 cash from Joey company tovard its proviounly written-off account. sal records recovery of this bad debt. Complete this question by entering your answers in the tabs below. Prepare Journal entries to record the direct write-off method. Journal entry worksheet Sal Company determines that it cannot collect its accounts receivable of $2,300 from Joey Company. Note: Enter debits before credits. Journal entry worksheet Sal Company unexpectedly receives payment of $2,300 cash from Joey Company toward its previously written-off account. Record the transaction to reinstate the account previously written off. Note: Enter debits before credits. Journal entry worksheet Sal Company unexpectedly receives payment of $2,300 cash from Joey Company toward its previously written-off account. Record the cash receipt. Note: Enter debits before oredits