On October 1, 2018, Watergate Hotels borrowed $800,000 at 12% interest and pledged $1,000,000 in accounts receivables as collateral. Additionally, Watergate was charged a finance fee equal to 1% of accounts receivable assigned. On December 1, 2018, $600,000 of the assigned receivables were collected. On December 31, all cash collected, in addition to accrued interest was remitted to the lender.

REQUIRED:

Prepare journal entries to: (1) record the borrowing; (2) collect the cash for the receivables; and (3) remit payment to the lender.