Homework Help: Accounting

Posted by adam on Saturday, June 14, 2008 at 10:24am.

Accounts receivable in the amount of 250,000 were assigned to the fast Finance Company by Nance INC as security for a loan of 200,000. The finance company charged a 4% commision on the face amount of the loan, and the note bears interest at 9% per year. During the first month Nance collected 130,000 on assigned accounts. This amount was remitted to the finance company along with one month's interest on the note.
Make all the entries for Nance Inc associated with the transfer of the accounts receivable, the loan, and the remittance to the finance company.

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