July 1 Ayayai Corp, sold to Blossom Ltd, merchandise having a sales price of $8,000, terms 2/10,n/60. Ignore cost of goods sold entry. 3 Blossom returned defective merchandise having a sales price of $500. The merchandise was not saleable and was scrapped. 5 Accounts receivable of $18,000 are factored with Bramble 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 $14,000 are pledged to Landon Credit Corp. as security for a loan of $10,000 at a finance charge of 2% of the loan amount plus 8% interest on the outstanding balance. Ayayai 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 Blossom notifies Ayayai 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