Information on Sheffield Corp., which reports under ASPE, follows: July 1 Sheffield Corp. sold to Oriole Company merchandise having a sales price of $8,400, terms 2/10, n/60. Ignore cost of goods sold entry. 3 Oriole Company returned defective merchandise having a sales price of $700. The merchandise was not saleable and was scrapped. 5 Accounts receivable of $20,400 are factored with Grouper 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 $19,700 (gross) are pledged to Landon Credit Corp. as security for a loan of $11,300 at a finance charge of 3% of the loan amount plus 8% interest on the outstanding balance. Sheffield 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 Oriole Company notifies Sheffield 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