On 1/1, Geary Co. assigned $800,000 of accounts receivable to Kwik Finance Co. as security for a loan of $670,000. Kwik charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During January, Geary collected $220,000 on assigned accounts after deducting $760 of discounts. Geary accepted returns worth $2,700 and wrote off assigned accounts totaling $5,960.

Show work clearly for the following questions.

a. Determine the amount of cash Geary received from Kwik at the time of the transfer

b. Determine the interest expense on the loan for the month of January.

c. Determine the balance of note payable at the end of January (after Geary remits January collection to Kwik)