Pina Colada Company, which follows ASPE, has determined, based on several years of collections history, that 3% of its accounts receivable will become uncollectible. At the company's year end of December 31, 2022, Pina Colada carried a balance of $743,000 in accounts receivable. The pre-closing credit balance in allowance for doubtful accounts was $6,400. On January 15, 2023, Pina Colada determined that it would not be able to collect the $2,400 owed by BHT Inc. After several months of repeated collections attempts and other legal activities, on August 12, BHT paid Pina Colada $540 of the previously written-off balance. Prepare the necessary journal entries to record the above transactions. Assume that Pina Colada uses the allowance method for accounting for impairments of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)