Information on Sheffield Corp., which reports under ASPE, follows:

July 1		Sheffield Corp. sold to Blossom Company merchandise having a sales price of $8,200, terms 2/10, n/60. Ignore cost of goods sold entry.
3		Blossom Company returned defective merchandise having a sales price of $600. The merchandise was not saleable and was scrapped.
5		Accounts receivable of $18,100 are factored with Blue Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds and collections are handled by the finance company.
9		Specific accounts receivable of $14,200 (gross) are pledged to Landon Credit Corp. as security for a loan of $11,400 at a finance charge of 2% of the loan amount plus 9% interest on the outstanding balance. Sheffield will continue to make the collections. All the accounts receivable pledged are past the discount period and were originally subject to a 3% discount.
Dec. 29		Blossom Company notifies Sheffield that it is bankrupt and will be able to pay only 10% of its account. Give the entry to write off the uncollectible balance using the allowance method.

Prepare all necessary journal entries on Sheffield Corp.’s books.