Prepare journal entries for Mars Co. for: Accounts receivable in the amount of $1,050,000 were...
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Accounting
Prepare journal entries for Mars Co. for:
Accounts receivable in the amount of $1,050,000 were assigned to Utley Finance Co. by Mars as security for a loan of $800,000. Utley charged a 3% commission on the accounts; the interest rate on the note is 14%
During the first month, Mars collected $460,000 on assigned accounts after deducting $800 of discounts. Mars wrote off a $1,060 assigned account.
Mars paid to Utley the amount collected plus 1 month's interest on the note
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