Journal Entries for Receivable Write-Offs

McGraw Medical Center has received a bankruptcy notice for Phillip Hollister. Hollister owes the medical center $1,350. The bankruptcy notice indicates that the medical center can't expect to receive payment of any of the $1,350.

1. Make the journal entry required to record the receipt of the bankruptcy notice.

2. Six months after the medical center received the bankruptcy notice, Hollister appeared requesting medical treatment. He agreed to pay his old bill in its entirety. Make the journal entries necessary to record receipt of the $1,350 payment from Hollister.