Presented below is information related to Waterway Corp.

August 1		Waterway Corp. sold to Sharper Co. merchandise having a sales price of $18,900 with terms 1/10, net/60. Waterwayrecords its sales and receivables net.
5		Accounts receivable of $60,600 (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 $27,800 (gross) are pledged to Second Credit Corp. as security for a loan of $18,000 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		Sharper Co. notifies Waterway 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 Waterway Corp.