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Diablo company applies the direct write-off method in

Question: Diablo Company applies the direct write-off method in accounting for uncollectible accounts. Prepare journal entries to record the following selected transactions of Diablo. June 11 Diablo determines that it cannot collect $9,000 of its accounts receivable from its customer Chaffey Company. 29 Chaffey Company unexpectedly pays its account in full to Diablo Company. Diablo records its recovery of this bad debt.

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