On June 30, 2020, the Apex Surfboard Company had outstanding accounts receivable of $800,000. On July 1, 2020, the company borrowed $600,000 from the Western Finance Corporation and signed a promissory note. Interest at 6% is payable monthly. The company assigned specific receivables totaling $800,000 as collateral for the loan. Western Finance charges a finance fee equal to 2% of the accounts receivable assigned. What would be the impact of the assigning of accounts receivable on July 2020 income statement?

A. Net income decreased by 21,000

B. Net income decreased by 20,000

C. Net income decreased by 22,000

D. Net income decreased by 19,000