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On January 1, 20X1, Kurtz Company assigns $500,100 of its accounts receivable to First Bank as collateral for a $350,000 loan due April 1, 20X1.
On January 1, 20X1, Kurtz Company assigns $500,100 of its accounts receivable to First Bank as collateral for a $350,000 loan due April 1, 20X1.
The assignment agreement calls for Kurtz Company to continue to collect the receivables.
First Bank assesses a finance charge of 2% of the accounts receivable, and interest on the loan is 8%.
How much does Kurtz Company credit to the Cash account on April 1, 20X1?
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