JOURNAL ENTRY PROBLEM

During August 2015, Lima Company recorded the following: Sales of $109,500 ($99,000 on account; $10,500 for cash). Collections on account, $86,100. Write-offs of uncollectible receivables, $1,820. Recovery of receivable previously written off, $200. Requirement 1. Journalize Lima's transactions during August2015, assuming Lima uses the direct-write off method. (Record debits first, then credits. Explanations will appear on the last line of the journal entry table.) Sales of $109,500 ($99,000 on account; $10,500 for cash). (Prepare a single compound journal entry.) Collections on account, $86,100. Write-offs of uncollectible receivables, $1,820. Recovery of receivable previously written off, $200. Start by preparing the entry to reinstate the receivable. Now prepare the entry to show the collection of the previously written off receivable