Homework $$ Secured borrowing of A$/$R$,$ Factoring of A$/$R

Part $1$:

On September $1,$ Williams Co$.$ assigns $$80,000$ for Quick Finance Company. Quick agrees to loan

$75\%$ of the A$/$R to Williams at $6\%$ interest. Quick also charges Williams $1\%$ of the A$/$R balance as

a service charge. As part of the agreement, Williams is to remit collecKons on the assigned

receivables at the end of each month unKl the debt is paid in full.

Williams collects the following amounts during the following months:

September $-$ $$40,000$

October $-$ $$25,000$

Required:

$1.$ Prepare the necessary entries on September $1$ for Williams Co$.$

$2.$ Prepare the necessary entries on September $30$ for Williams Co$.$

$3.$ Prepare the necessary entries on October $31$ for Williams Co$.$

NOTE: When preparing journal entries, round all dollar amounts to the nearest dollar.