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Company Z assigns $600,000 of its accounts receivable as collateral on a $550,000 loan on...

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Accounting

Company Z assigns $600,000 of its accounts receivable as collateral on a $550,000 loan on September 1,2020. The loan is due on December 31,2020. The bank assesses a finance charge of 2% of the receivables and interest of 5%. What is the total amount of cash that Company Z pays to the bank on December 31,2020?
Group of answer choices
$550,000
$600,000
$610,000
$559,167

Answer & Explanation Solved by verified expert
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