Presented below is information related to Banner Corp.

July 1 - Banner Corp. sold to Mission Co. merchandise having a sales price of $10,000 with terms 2/10, net/60. Sanford records its sales and receivables net.

July 5 - Accounts receivable of $12,000 (gross) are factored with Equitable Credit Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds; collections are handled by the finance company. (These accounts were all past the discount period and were originally recorded net of the discount.)

Dec 29 - Mission Co. notifies Banner 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.)

Required: Prepare all necessary journal entries for Banner Corp.