Starlight Ltd.assigned $600,000 of Accounts Receivable to Moonbeam Management as security for a loan of $580,000.Moonbeam charged a 3% commission on the amount of the loan; the interest rate on the note was 10%.During the first month, Starlight collected $320,000 of the assigned accounts, after deducting $500 of discounts.As well, Starlight accepted returns worth $2,600 and wrote off assigned accounts totalling $4,500.The amount of cash Starlight received from Moonbeam at the time of the transfer was

Question

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Moonbeam charged a 3% commission on the loan amount of $580,000, which is $17,400. Therefore, the total amount that Starlight received from Moonbeam is $580,000 - $17,400 = $562,600.
During the first month, Starlight collected $320,000 of the assigned accounts after deducting $500 of discounts, so the net amount collected is $319,500. Starlight also accepted returns worth $2,600 and wrote off assigned accounts totalling $4,500. Therefore, the remaining accounts receivable assigned to Moonbeam is $600,000 - $319,500 + $2,600 - $4,500 = $278,600.
Since Moonbeam charged a commission on the entire loan amount of $580,000, the commission on the remaining assigned accounts receivable is 3% x $278,600 = $8,358. The interest for the first month is (10%/12) x $580,000 = $4,833.33.
Therefore, the amount of cash Starlight received from Moonbeam at the time of the transfer is $562,600 - $8,358 - $4,833.33 = $549,408.67, which is closest to choice C: $562,600.