Twinkie Ltd.assigned $500,000 of Accounts Receivable to Friendly Finance as security for a loan of $420,000.Friendly charged a 2% commission on the amount of the loan; the interest rate on the note was 10%.During the first month, Twinkie collected $110,000 of the assigned accounts, after deducting $380 of discounts.As well, Twinkie accepted returns worth $1,350 and wrote off assigned accounts totalling $3,700.The amount of cash Twinkie received from Friendly at the time of the transfer was
A)$378,000.
B)$410,000.
C)$411,600.
D)$420,000.

Question

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The Answer of Twinkie Ltd.assigned $500,000 of Accounts Receivable to Friendly Finance as security for a loan of $420,000.Friendly charged a 2% commission on the amount of the loan; the interest rate on the note was 10%.During the first month, Twinkie collected $110,000 of the assigned accounts, after deducting $380 of discounts.As well, Twinkie accepted returns worth $1,350 and wrote off assigned accounts totalling $3,700.The amount of cash Twinkie received from Friendly at the time of the transfer was
A)$378,000.
B)$410,000.
C)$411,600.
D)$420,000.