Caymen Supplies frequently assigns its accounts receivable in order to obtain immediate cash.
Required:
Prepare journal entries for the following:
a. The company assigned $1,340,000 of accounts receivable, receiving a 93% advance less service charges of $25,800.
b. The company collected $830,000 of these receivables and remitted the collection to the finance company along with one month's interest at 15%.

Question

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The Answer of Caymen Supplies frequently assigns its accounts receivable in order to obtain immediate cash.
Required:
Prepare journal entries for the following:
a. The company assigned $1,340,000 of accounts receivable, receiving a 93% advance less service charges of $25,800.
b. The company collected $830,000 of these receivables and remitted the collection to the finance company along with one month's interest at 15%.

Caymen Supplies Frequently Assigns Its Accounts Receivable in Order to Obtain