Presented below is information related to Ayayai Corp., which sells merchandise with terms 2/10, net 60. Ayayai Corp. records its sales and receivables net. July 1 5 9 Ayayal Corp. sold to Warren Harding Co. merchandise having a sales price of $13,000. Accounts receivable of $15,000 (gross) are factored with Andrew Jackson Credit Corp, without recourse at a financing charge of 8% Cash is received for the proceeds; collections are handled by the finance company. (These accounts were all past the discount period.) Specific accounts receivable of $15,000 (gross) are pledged to Alf Landon Credit Corp. as security for a loan of $6,400 at a finance charge of 6% of the amount of the loan. The finance company will make the collections. (All the accounts receivable are past the discount period.) Warren Harding Co. notifies Ayayai that it is bankrupt and will pay only 10% 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.) Dec. 29 Prepare all necessary entries in general journal form for Ayayai Corp. (If no entry is required, select "No Entry for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 775 (To record discount forfeited) 779 (To record notes payable) List of Accounts Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Allowance for Sales Returns and Allowa Bad Debt Expense Cash Cash Over and Short Due from Factor Due to Customer Discount on Notes Payable Discount on Notes Receivable Equity Investments Freight-in Freight-Out Gain on Disposal of Land Interest Expense Interest Payable Interest Receivable Interest Revenue Freight-Out Gain on Disposal of Land Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Disposal of Investment Loss on Sale of Receivables Maintenance and Repairs Expense Miscellaneous Expenses No Entry Notes Payable Notes Receivable Othee Expense Owner's Drawings Petty Cash Postage Expense Prepaid Postage Purchase Discounts Recure Litty Sales Discounts Sweet Food SRA Service