Prepare journal entries for Mars Co. for:

Accounts receivable in the amount of $1,050,000 were assigned to Utley Finance Co. by Mars as security for a loan of $800,000. Utley charged a 3% commission on the accounts; the interest rate on the note is 14%

During the first month, Mars collected $460,000 on assigned accounts after deducting $800 of discounts. Mars wrote off a $1,060 assigned account.

Mars paid to Utley the amount collected plus 1 month's interest on the note