Response to the following problem:
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.