Swifty Company has determined, based on several years of collections history, that 2% of its accounts receivable will become uncollectible. At the companys year end of December 31, 2020, Swifty carried a balance of $748,000 in accounts receivable. The pre-closing credit balance in allowance for doubtful accounts was $6,900. On January 15, 2021, Swifty determined that it would not be able to collect the $2,900 owed by BHT Inc. After several months of repeated collections attempts and other legal activities on August 12, BHT paid Swifty $590 of the previously written-off balance. Prepare the necessary journal entries to record the above transactions. Assume that Swifty uses the allowance method for accounting for impairments of accounts receivable.

ate Account Titles and Explanation Debit Credit (To reinstate the account written-off and now determined to be collectible) Activate Wind Go to Settings to (Collection on account)