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Gate City Cycles had trouble collecting its account receivable from Sue Ann Noel. On June 19, 2012, Gate City finally wrote off Noel's $700 account receivable. Gate City turned the account over to an attorney, who hounded Noel for the rest of the year. On December 31, Noel sent a $700 check to Gate City Cycles with a note that said, ?oHere's your money. Please call off your bloodhound.
Requirement
1. Journalize the entries required for Gate City Cycles, assuming Gate City uses the direct write-off method.
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