July 1 Flounder Corp. sold to Pharoah Company merchandise having a sales price of $8,200, terms 2/10, n/60. Ignore cost of goods sold entry. July 3 Pharoah Company returned defective merchandise having a sales price of $800. The merchandise was not saleable and was scrapped. July 5 Accounts receivable of $19,200 are factored with Concord Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds and collections are handled by the finance company. July 9 Specific accounts receivable of $16,800 (gross) are pledged to Landon Credit Corp. as security for a loan of $10,600 at a finance charge of 3% of the loan amount plus 9% interest on the outstanding balance. Flounder 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 Pharoah Company notifies Flounder 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. Date Account Titles and Explanation Debit Credit July 1 Flounder Corp. sold to Pharoah Company merchandise having a sales price of $8,200, terms 2/10, n/60. Ignore cost of goods sold entry. July 3 Pharoah Company returned defective merchandise having a sales price of $800. The merchandise was not saleable and was scrapped. July 5 Accounts receivable of $19,200 are factored with Concord Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds and collections are handled by the finance company. July 9 Specific accounts receivable of $16,800 (gross) are pledged to Landon Credit Corp. as security for a loan of $10,600 at a finance charge of 3% of the loan amount plus 9% interest on the outstanding balance. Flounder 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 Pharoah Company notifies Flounder 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. Date Account Titles and Explanation Debit Credit