Riverbed Company has determined, based on several years of collections history, that 3% of its accounts receivable will become uncollectible. At the companys year end of December 31, 2020, Riverbed carried a balance of $745,000 in accounts receivable. The pre-closing credit balance in allowance for doubtful accounts was $6,600. On January 15, 2021, Riverbed determined that it would not be able to collect the $2,600 owed by BHT Inc. After several months of repeated collections attempts and other legal activities on August 12, BHT paid Riverbed $560 of the previously written-off balance. Prepare the necessary journal entries to record the above transactions. Assume that Riverbed uses the allowance method for accounting for impairments of accounts receivable.