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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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