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
a. debit to Interest Expense of $280.
b. credit to Cash of $8,000.
c. credit to Account Receivable Assigned of $8,000.
d. debit to Notes Payable of $8,280.
A
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Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)