Thorston Corp. reports the following ledger balances at 1/1/x2 related to its trade accounts receivable.

Account	Amount
Accounts receivable	$410,000
Allowance for doubtful accounts	$25,000
Allowance for sales returns	$10,000

Thorston Corp. uses the net method of accounting for cash discounts, allowing terms 3/10, n/40 on its credit sales. During the year, the company recorded credit sales revenue of $2,300,000 and collected cash from its outstanding credit customers of $2,480,000. $2,220,000 of the cash was collected within the 40-day discount window and the remaining $260,000 was collected outside the 40-day window, resulting in $7,800 of sales discounts forfeited.

$19,000 of customer accounts were written off during the year after they were determined to be in default. $2,000 of customer accounts were reinstated after being written off and Thorston Corp. collected $1,800 of these accounts.

The company also offers a 3-month return policy connected with its merchandise sold on credit. The company estimates sales returns at 3% of its sales for the period. During the year, the company recorded $17,000 of actual customer returns.

1. Provide the journal entries for all transactions that occurred during the year. For each entry, determine the impact of each debited and credited account to A/L/NI.