Information on Blue Spruce Corp., which reports under ASPE, follows: July 1 Blue Spruce Corp. sold to Crane Ltd. merchandise having a sales price of $9,500, terms 2/10, n/60. Ignore cost of goods sold entry. 3 Crane returned defective merchandise having a sales price of $900. The merchandise was not saleable and was scrapped. 5 Accounts receivable of $18,200 are factored with Swifty Corp. without recourse at a financing charge of 10%. Cash is received for the proceeds and collections are handled by the finance company. 9 Specific accounts receivable of $16,700 are pledged to Landon Credit Corp. as security for a loan of $11,400 at a finance charge of 3% of the loan amount plus 10% interest on the outstanding balance. Blue will continue to make the collections. All the accounts receivable pledged are past the discount period and were originally subject to a 2% discount. Dec. 29 Crane notifies Blue that it is bankrupt and will be able to pay only 10% of its account. Prepare the entry to write off the uncollectible balance using the allowance method. (a) Prepare all necessary journal entries on Blue's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)