Tiny Company uses the direct write-off method of recording credit losses. Tiny Company wrote off the $1,600 account of Tim Co. in October 2019. In February 2020, Tiny Company received a final $600 payment from Tim's trustee in bankruptcy.
Giant should make the following entry or entries to record the payment:

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Oct. 2019 Bad debts expense 600
$\quad $ $\quad $ $\quad $ Accounts receivable - Tim Co. 600
To write off the Tim Co.'s account
Feb. 2020 Accounts receivable - Tim Co. 600
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Bad debts expense 600
To reinstate Tim Co.'s account to the extent of the recovery.
Feb. 2020 Cash 600
$\quad $ $\quad $ $\quad $ Accounts receivable-Tim Co. 600
To record collection of cash on account

Tiny Company Uses the Direct Write-Off Method of Recording Credit \quad

Tiny Company Uses the Direct Write-Off Method of Recording Credit $\quad$