Prepare the following 3 journal entries for Mercury Co.:

#1 Accounts receivable in the amount of $3,000 were assigned to Timely Finance Co. by Mercury as security for a loan of $1,500. Timely charged a 4% commission on the accounts; the interest rate on the note is 8%.

#2 During the first month, Mercury collected $1,000 on assigned accounts.

#3 The following month Mercury made a payment on the note based on the above accounts receivable collections. Record payment of the note and interest