Stephen Limited prepared its last financial statement on the 30^th day of June 2022. The statement of financial position of Stephen Limited reveals the following balances for the Account Receivable and Allowances for Doubtful Debts:

Accounts Receivable $18 667.67

Allowance for Doubtful Debts $667.67

The following transactions relate to July 2022:

The total sales for the month are $173 333.33. However, $53 333.33 is the cash sales out of the total sales.

The amount of $80 000 is collected from the customers.

It is estimated that the bad debts for this month will be two per cent of the total credit sales.

Stephen Ltd has decided to write-offs of its bad debts of $1 666.67.

Required:

Based on the above information, prepare journal entries to record each of the above transactions.