The balance sheet of Sheffield Company at December 31, 2019, includes the following. Notes receivable $51,200
Accounts receivable 195,600
Less: Allowance for doubtful accounts 24,600 $222,200
Transactions in 2020 include the following.
1. Accounts receivable of $151,300 were collected including accounts of $67,500 on which 4% sales discounts were allowed.
2. $5,670 was received in payment of an account which was written off the books as worthless in 2019.
3. Customer accounts of $24,800 were written off during the year.
4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $20,900. This estimate is based on an analysis of aged accounts receivable.
Required:
Prepare all journal entries necessary to reflect the transaction above.

S/n  Accounts titles                                    Debit         Credit

1.      Cash[$151,300 - ($67,500*4%)]       $148,600

        Sales Discounts ($67,500*4%)       $2,700

            Accounts Receivable                                       $151,300

2.      Accounts Receivable                       $5,670

               Allowance for Doubtful Accounts                 $5,670

        Cash                                                   $5,670  

               Accounts Receivable                                      $5,670

3.      Allowance for Doubtful Accounts     $24,800

               Accounts Receivable                                      $24,800

4.      Bad Debt Expense                              $15,430

                 Allowance for Doubtful Accounts                 $15,430

Workings:

$24,600 + $5,670 - $24,800 = $5,470

$20,900 - $5,470 =

answer; ( prices are sticky);

answer; lags, push the econ below the natural level of output;