Information on Indigo Corporation, which reports under ASPE, follows July 1 Indigo Corporation sold to Sandhill Co merchandise having a sales price of $8,600, terms 2 10, n 60 Ignore cost of goods sold entry 3 Sandhill Co returned defective merchandise having a sales price of $600 The merchandise was not saleable and was scrapped 5 Accounts receivable of $20,700 are factored with Blue Corp without recourse at a financing charge of 8 Cash is received for the proceeds and collections are handled by the finance company 9 Specific accounts receivable of $14,200 (gross) are pledged to Landon Credit Corp as security for a loan of $10,300 at a finance charge of 3 of the loan amount plus 8 interest on the outstanding balance Indigo 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 Sandhill Co notifies Indigo 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 (a) Prepare all necessary journal entries on Indigo Corporations books (Credit account titles are automatically indented when 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 )

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Information on Indigo Corporation, which reports under ASPE, follows: July 1 Indigo Corporation sold to Sandhill Co. merchandise having a sales price of $8,600, terms

Information on Indigo Corporation, which reports under ASPE, follows:

July 1		Indigo Corporation sold to Sandhill Co. merchandise having a sales price of $8,600, terms 2/10, n/60. Ignore cost of goods sold entry.
3		Sandhill Co. returned defective merchandise having a sales price of $600. The merchandise was not saleable and was scrapped.
5		Accounts receivable of $20,700 are factored with Blue Corp. without recourse at a financing charge of 8%. Cash is received for the proceeds and collections are handled by the finance company.
9		Specific accounts receivable of $14,200 (gross) are pledged to Landon Credit Corp. as security for a loan of $10,300 at a finance charge of 3% of the loan amount plus 8% interest on the outstanding balance. Indigo 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		Sandhill Co. notifies Indigo 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.

(a) Prepare all necessary journal entries on Indigo Corporations books. (Credit account titles are automatically indented when 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.)