On August 1,a firm assigned $30,000 of its $56,000 of accounts receivable.The finance company advanced 90% of the assigned accounts less a $2,000 fee.Interest is 12% and payable monthly on the beginning-of-period loan balance.A loan payment is remitted at the end of each month.Each payment includes principal and interest.The amount of each loan payment equals the cash collected on receivables during the month plus interest on the loan balance. If $8,000 was collected on accounts receivable during August,the entry for the first loan payment would include a

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The interest for the month is calculated as 12% annually on the loan balance. The loan balance is 90% of $30,000 minus the $2,000 fee, which is $25,000. The monthly interest is $25,000 * (12%/12) = $250. However, the correct choice is $280, which suggests a calculation error or additional context not provided.

On August 1,a Firm Assigned $30,000 of Its $56,000 of Accounts