Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help me fast On August 1, Amana company assigned $30,000 of its $56,000 of accounts receivable to get a loan equals to $28,000 from Arab
help me fast
On August 1, Amana company assigned $30,000 of its $56,000 of accounts receivable to get a loan equals to $28,000 from Arab Bank. Interest is 12% and payable monthly on thebeginning-of-period loan balance. A loan payment is remitted at the end of each month. Each payment includes principal and interest. The amount of eachloan payment equals the cash collected on receivables during the month plus interest on the loan balance.If $8,000 was collected on accounts receivable during August, the entry for the first loan payment would include a
Select one:
a. credit to Account Receivable Assigned of $8,000.
b. credit to Cash of $8,000.
c. debit to Notes Payable of $8,280.
d. debit to Interest Expense of $280.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started