Prepare the journal entry needed for the transactions

Jan 17, 2007, the account receivable department could not contact Ted. He changed his contact information, and the department could not track him. Ted has an outstanding balance of $20,000.

Feb 20, 2007, the account receivable department finally found the new contact of ted. They confronted him regarding the outstanding balance. Ted acknowledges the outstanding balance, but he only has $11,000 funds. The department accepts the $11,000 and will not pursue the remaining balance.