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On July 31,Nash Company received a statement that the finance company had collected $248,000 of these accounts and had made an additional charge of 0.60%
On July 31,Nash Company received a statement that the finance company had collected $248,000 of these accounts and had made an additional charge of 0.60% of the total accounts outstanding as of July 31. This charge is to be deducted at the time of the first remittance due Nash Company from the finance company. (Hint: Make entries at this time.) On August 31, 2020, Nash Company received a second statement from the finance company, together with a check for the amount due. The statement indicated that the finance company had collected an additional $155,000 and had made a further charge of 0.60% of the balance outstanding as of August 31. Make all entries on the books of Nash Company that are involved in the transactions above. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit uly 1 Cash 369210 Interest Expense 2790 Notes Payable 372000 July 31
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