11. Geary Co. assigned $1,600,000 of accounts receivable to Kwik Finance Co. as security for a loan of $1,340,000. Kwik charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During the first month, Geary collected $440,000 on assigned accounts after deducting $1,520 of discounts and remit the collection to Kwik. Geary accepted returns worth $5,400 and wrote off assigned accounts totaling $11,920.

a) What is the journal entry that Geary should have.

b) What is the journal entry that Geary should make to remit the collection to Kwik.