At the end of 2026, Blossom Co. has accounts receivable of $802,700 and an allowance for doubtful accounts of $34,200. On January 24, 2027, it is learned that the company's receivable from Richetti Inc. is not collectible and therefore management authorizes a write-off of $6,900. On March 4, 2027, Blossom Co. receives payment of $6,900 in full from Richetti Inc.
Prepare the journal entries to record this transaction. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Mar. 4
(To reverse write-off)
(To record collection from Richetti)