Information on Janut Corp. follows: Instructions Prepare all necessary journal entries on Janut Corp.'s books. 1 Janut

Information on Janut Corp. follows:

Instructions
Prepare all necessary journal entries on Janut Corp.'s books.

Transcribed Image Text:

1 Janut Corp. sold to Harding Ltd. merchandise having a sales price of $9,000, terms 3/10, net/60. Janut records its sales and receivables net. Harding Ltd. returned defective merchandise having a sales price of $700. Accounts receivable of $19,000 (gross) are factored with Jackson Credit Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds and collections are handled by the finance company. (These accounts were subject to a 2% discount and were all past the discount period.) Specific accounts receivable of $15,000 (gross) are pledged to Landon Credit Corp. as security for a loan of $11,000 at a finance charge of 3% of the loan amount plus 9% interest on the outstanding balance. Janut will continue to make the collections. All the accounts receivable pledged are past the discount period and were originally subject to a 2% discount. Harding Ltd, notifies Janut that it is bankrupt and will be able to pay only 10% of its account. Give the entry to write off the uncollectible balance using the allowance method. (Note: First record the increase in the receivable on July 11 when the discount period passed.) July 3 5 9 Dec. 29