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

July 1		Swifty Corporation sold to Wildhorse Co. merchandise having a sales price of $8,500, terms 2/10, n/60. Ignore cost of goods sold entry.
3		Wildhorse Co. returned defective merchandise having a sales price of $700. The merchandise was not saleable and was scrapped.
5		Accounts receivable of $19,600 are factored with Ayayai Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds and collections are handled by the finance company.
9		Specific accounts receivable of $16,600 (gross) are pledged to Landon Credit Corp. as security for a loan of $10,800 at a finance charge of 3% of the loan amount plus 9% interest on the outstanding balance. Swifty 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 Swifty 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 Swifty Corporations books.

List of possible accounts are as follows:

Accounts Payable Accounts Receivable Accrued Liabilities Accumulated Depreciation - Equipment Advances to Employees Advertising Expense Allowance for Doubtful Accounts Allowance for Sales Returns and Allowances Bad Debt Expense Bank Charges Expense Cash Cash Over and Short Due from Factor Entertainment Expense Equipment Finance Expense Finance Revenue Freight in Freight out Gain on Disposal of Equipment Gain on Disposal of Land Interest Expense Interest Income Interest Receivable Inventory Land Loss on Disposal of Equipment Loss on Disposal of Land Loss on Disposal of Receivables Loss on Impairment Miscellaneous Expense No Entry Notes Payable Notes Receivable Office Expense Petty Cash Postage Expense Prepaid Expenses Purchase Discounts Recourse Liability Refund Liability Rent Expense Sales Discounts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Servicing Liability Service Revenue Supplies Supplies Expense Unearned Revenue