as collateral for a $$70,000$ loan due August $1$ of the same year.

The assignment agreement calls for Bay Co$.$ to continue to collect the receivables.

The bank assesses a finance charge of $3\%$ of the accounts receivable.

The interest rate on the loan is $8\%$ which is a realistic interest rate for this type of loan.

RUCTIONS:

Prepare the journal entry that Bay Co$.$ would make on February $1$

Prepare the journal entry for Bay's collection of $$50,000$ of the receivables between February $1$ and

July $31.$

Prepare the journal entry to record Bay Co$.\text{'}$s payment to the bank.