PG - 11 - Factoring and Assignment of Accounts Receivable* Lazard Corporation has experienced cash flow problems and decides to improve its current cash position by factoring 30 %/ of its receivables , without recourse , and assigning the remainder with the same finance company . The factored receivables meet the conditions for a sale while the assigned receivables do not . The agreement with the finance company stipulates that a 10%/ commission will be assessed on factored accounts , no service charge is assessed on assigned accounts , and a 15%/ annual interest will be charged on the outstanding note payable balance related to the assigned accounts . Additionally , the finance company will advance only 80% of* the factored and assigned accounts , and Lazard must continue the collection responsibilities on the assigned accounts . At the beginning of the last month of the company's fiscal year , the accounts receivable transferred to the finance company amounted to $187 , 000 . During the month , collections on factored accounts were $ 46 ,000 , and collection on assigned accounts* amounted to $84 , 000 . All collections on assigned accould counts plus accrued interest were remitted to the finance company at the end of the month . The remaining amounts owed will be remitted within these months . Required :" 1 . Prepare all journal entries to record the preceding information on Lazard's books . 2 . How would the accounts related to Lazard's factoring and assignment agreements be reported on Lazard's year -end financial statements