Presented below is information related to Vaughn Corp., which sells merchandise with terms 2/10, net 60. Vaughn Corp. records its sales and receivables net.

July 1		Vaughn Corp. sold to Warren Harding Co. merchandise having a sales price of $18,000.
5		Accounts receivable of $14,800 (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.) Prepare all necessary entries in general journal form for Vaughn Corp