Current Attempt in Progress

Presented below is information related to Waterway Corp., which sells merchandise with terms $\frac{2}{10},$ net $60.$ Waterway records its sales and receivables net.

July $1$ Waterway Corp. sold to Warren Harding Co$.$ merchandise having a sales price of $$15,000.$

$5$ Accounts receivable of $$14,300($gross$)$ are factored with Andrew Jackson Credit Corp. without recourse at a financing charge of $9\%.$ Cash is received for the proceeds; collections are handled by the finance company. $($These accounts were all past the discount period.$)$

$9$ Specific accounts receivable of $$14,300($gross$)$ are pledged to Alf Landon Credit Corp. as security for a loan of $$6,500$ at a finance charge of $6\%$ of the amount of the loan. The finance company will make the collections. $($All the accounts receivable are past the discount period.$)$

Dec. $29$ Warren Harding Co$.$ notifies Waterway that it is bankrupt and will 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.$)$

Prepare all necessary entries in general journal form for Waterway Corp. $($If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the probjem.$)$