Prepare journal entries for Mars Co. for :

(a) Accounts receivable in the amount of $500,000 were assigned to Utley Finance Co. by Mars as security for a loan of $425,000. Utley charged a 3% commission on the accounts; the interest rate on the note is 12%.

(b) During the first month, Mars collected $200,000 on assigned accounts after deducting $450 of discounts. Mars wrote off a $530 assigned account.

(c) Mars paid to Utley the amount collected plus one month's interest on the note.