During August 2018, Lough Company recorded the following:
• Sales of $104.200 ($88,000 on account: $16,200 for cash). Ignore Cost of Goods Sold.
• Collections on account. $69.900.
• Write-offs of uncollectible receivables. $1.900.
• Recovery of receivable previously written off, $300.
Requirements
2.
Journalize Lough's transactions during August 2018, assuming Lough uses the direct write-off method.
Journalize Lough's transactions during August 2018, assuming Lough uses the allowance method.