Presented below is information related to Cheyenne Corp.

August $1$ Cheyenne Corp. sold to Ayayai Co$.$ merchandise having a sales price of $$20,000$ with terms $\frac{1}{10},$ net $\frac{?}{60}.$ Cheyenne

records its sales and receivables net.

$5$ Accounts receivable of $$57,500($gross$)$ are factored with Easy Credit Corp. with recourse at a financing charge of $5\%.$

Cash is received for the proceeds; collections are handled by the finance company. $($These accounts were all past the

discount period.$)$

$9$ Specific accounts receivable of $$27,300($gross$)$ are pledged to Second Credit Corp. as security for a loan of $$20,600$ 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.$)$

Sep. $29$ Ayayai Co$.$ notifies Cheyenne that it is bankrupt and will pay only $21\%$ of its account. Give the entry to write off the

uncollectible balance using the allowance method. $($Note: First record the increase in the receivable when the discount

period passed.$)$

Prepare all necessary entries in general journal form for Cheyenne Corp. $($Credit account titles are automatically indented when the

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all

debit entries before credit entries. Record journal entries in the order presented in the problem.$)$

$($To record discount forfeited$)$

$($To record receipt$)$

$($To record discount forfeited$)$