Accounts receivable in the amount of $6,000 were assigned to On Time Finance Co. by Saturn as security for a loan of $5,000. On Time charged a 5% commission on the accounts; the interest rate on the note is 12%. #2 During the first month, Saturn collected $4,000 on assigned accounts. #3 The following month Saturn made a payment on the note based on the above accounts receivable collections. Record payment of the note and interest
Accounts receivable in the amount of $6,000 were assigned to On Time Finance Co. by Saturn as security for a loan of $5,000. On Time charged a 5% commission on the accounts; the interest rate on the note is 12%. #2 During the first month, Saturn collected $4,000 on assigned accounts. #3 The following month Saturn made a payment on the note based on the above accounts receivable collections. Record payment of the note and interest
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Accounts receivable in the amount of $6,000 were assigned to On Time Finance Co. by Saturn as security for a loan of
$5,000. On Time charged a 5% commission on the accounts; the interest rate on the note is 12%.
#2 During the first month, Saturn collected $4,000 on assigned accounts.
#3 The following month Saturn made a payment on the note based on the above accounts receivable collections. Record
payment of the note and interest
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