Problem 7-6

The balance sheet of Teal Company at December 31, 2016, includes the following.

Notes receivable		$36,200
Accounts receivable		195,800
Less: Allowance for doubtful accounts		20,700		$211,300

Transactions in 2017 include the following.

1.		Accounts receivable of $142,700 were collected including accounts of $69,300 on which 3% sales discounts were allowed.
2.		$5,920 was received in payment of an account which was written off the books as worthless in 2016.
3.		Customer accounts of $20,900 were written off during the year.
4.		At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $23,200. This estimate is based on an analysis of aged accounts receivable.

Prepare all journal entries necessary to reflect the transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)