University Cycle Shop had trouble collecting its account receivable from Matt Reid. On January 19, University finally wrote off Reid's $2,400 account receivable. University turned the account over to a lawyer, who pursued Reid for payment for the rest of the year. On December 31, Reid sent a $2,400 cheque to University Cycle Shop with a note that said, "Here's your money. Please call off your bloodhound!"
Journalize the following transactions for University Cycle Shop:
Jan. 19 Write-off of Reid's account against Allowance for Doubtful Accounts.
Dec. 31 Reinstatement of Reid's account.
31 Collection of cash from Reid.