CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEX Exercise 7-12 Presented below is Information related to James Garfield Corp., which sells merchandise with terms 2/10, net 60. James Garfield Corp. records its cales and receivable net July 1 James Garfield Corp. sold to Warren Harding Co. merchandise having a sales price of $8.000. 5 Accounts receivable of $9.000 (gross) are factored with Andrew Jackson Credit Corp. without recourse at a financing charge of 99% 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 $9.000 (gross) are pledged to Alf Landon Credit Carpas security for a loan of $6,000 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 James 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 July 11 when the discount period passed.) Prepare all necessary entries in general Journal form for James Garfield Corp. (If no entry is required, select "No Entry for the account titles and enter 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 problem.) Date Account Titles and Explanation Debit