At the end of 2014, Carpenter Co. has accounts receivable of $702,140 and an allowance for doubtful accounts of $64,350. On January 24, 2015, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $7,020. On March 4, 2015, Carpenter Co. receives payment of $7,020 in full from Megan Gray.
Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)