Problem 7-6 The balance sheet of Swifty Company at December 31, 2016, includes the following.

Notes receivable $41,600

Accounts receivable 185,100 Less:

Allowance for doubtful accounts 18,600 $208,100

Transactions in 2017 include the following.

1. Accounts receivable of $143,400 were collected including accounts of $60,300 on which 4% sales discounts were allowed.

2. $5,590 was received in payment of an account which was written off the books as worthless in 2016.

3. Customer accounts of $18,800 were written off during the year.

4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $27,200. This estimate is based on an analysis of aged accounts receivable.