Chapter 1 Problem 6-9
July 1 Accounts receivable – assigned 800,000
Accounts receivable 800,000
1 Cash (640,000 – 24,000) 616,000
Service charge (3% x 800,000) 24,000
Note payable – bank 640,000
Aug. 1 Interest expense (1% x 640,000) 6,400
Note payable – bank 413,600
Accounts receivable – assigned 420,000
Sept. 1 Cash 91,336
Interest expense 2,264
Note payable – bank 226,400
Accounts receivable – assigned 320,000
Accounts receivable 60,000
Accounts receivable – assigned 60,000
Bank loan 640,000
August 1 payment 413,600
Balance 226,400
Collections by bank 320,000
Less: Payment of loan 226,400
Interest (1% x 226,400) 2,264 228,664
Remittance from bank 91,336
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