On January 1, 2013, XYZ Inc. assigned $500,000 of their A/R to Finance, Inc. Finance agreed to pay XYZ 80% of its assigned A/R in cash, less a $10,000 service charge. Finance will also charge 12% interest on any outstanding balances. On the last day of each month, ABC remitted the cash collected from assigned accounts to Finance, Inc. At the end of January, XYZ collected $200,000 in assigned A/R and also had $10,000 in sales returns during the month. By the end of February, XYZ collected another $80,000 of assigned A/R less sales discounts taken in the amount of $2,500 during the month.

9)What is the balance in the Note Payable account at the end of February? a. $126,040 b. $128,540 c. $228,050 d. $230,550 10) What is the balance in the A/R Assigned account at the end of February? a. $110,000 b. $207,500 c. $210,000 d. $217,500 11) What is the net effect on net income of all the transactions in 2013 related to the assigned accounts? a. $(28,540) b. $(16,040) c. $(3,540) d. $(18,540)