Problem:
Rupert Manufacturing Co. sold $20,000 of merchandise to Mr. J. Hart on May 14, 2007, on account. The company attempted collection efforts starting in October of the same year. Hart filed for bankruptcy on November 18, and the company wrote off his account receivable at that time. On December 29, 2007, Rupert Manufacturing received a check for $6,000 in settlement of the debt of Mr. Hart, who stated that he could pay no more.
Prepare all of the journal entries for Rupert Manufacturing in regard to the account of Mr. J. Hart during 2007.