MY INSTRUCTOR BACK CALCULATOR MESSAG FULL SCREEN PRINTER VERSION NEXT Exercise 7-12 Presented below is information related to James Garfield Corp. July 1 James Garfield Corp. sold to Warren Harding Co. merchandise having a sales price of $11,000 with terms 2/10, net/60. Garfield records its sales and receivables net. 5 Accounts receivable of $12,200 gross are factored with Andrew Jackson Credit Corp. without recourse at a financing charge o 9 %. Cash Is received for the proceeds; collections are handled by the finance company. These 9 Specific accounts receivable of $12,200 gross are pledged to Alf Landon Credit Corp. as security for a loan of $6,20 at a finance charge of 6% o the amount of the loan. The f nance company will make the collections A accounts were all past the discount period.) the accounts receivable are past the discount period.) July 11 when the discount period passed.) Dec. 29 Warren Harding Co. notifies Garfield 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 Prepare all necessary entries in general journal form for Garfield Corp. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the Date Account Titles and Explanation Debit Credit 7/5 7/9 (To record discount forfeited) 7/9 719