Information on Novak Corp., which reports under ASPE, follows:

July 1		Novak Corp. sold to Wildhorse Co. merchandise having a sales price of $8,700, terms 3/10, n/60. Novak records its sales and receivables net.
3		Wildhorse Co. returned defective merchandise having a sales price of $600.
5		Accounts receivable of $19,000 (gross) are factored with Pina Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds and collections are handled by the finance company. (These accounts were subject to a 2% discount and were all past the discount period.)
9		Specific accounts receivable of $15,700 (gross) are pledged to Landon Credit Corp. as security for a loan of $11,400 at a finance charge of 2% of the loan amount plus 9% interest on the outstanding balance. Novak 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		Wildhorse Co. notifies Novak that it is bankrupt and will be able to pay only 14% 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 journal entries on Novak Corp.s 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.)