Preparing Entries for a secured Borrowing and subsequent Collections and Payments Antep was executed by Sterling inc. 1o MamiFinance Company Steine intuned 192,000 of accounts recebe as collateral for the Sun. The contract provided that Mir would advance of the jos amount of the receivables Sterling in continues to collect payments for the receivable and the shfrom stomers is the cented to the finance company. The cash remited first applied to the changes with the remainder applied to propal During the first month, mes de $131,200 paid cah, les sales returns and allowances of 35,120, polycarded as a refund attity. The finance charge at the end of the true month was 1,120 Durant the second month the remaining receivables were collected in full, except for 1.200 off as uncollectie Firal sentent was elected with the finance company duding payment of an additional finance charge of Record the entry for to record the red bowie AN Cam becord them for testovecote colchone the payment to ami for the first month Aroma Cach 0 Act Theo Cich 0 0 Hefur for the second hand the team AN DE CE 0 Preparing Entries for a Secured Borrowing and subsequent collections and Payments A note payable was executed by Sterling Inc. to Miami Finance Company, Sterling Inc. used $192,000 of its accounts rece amount of the receivables. Sterling Inc. continues to collect payments for the receivables and the cash from customers i with the remainder applied to principal. During the first month, customers owing $131,200 paid cash, less sales returns and allowances of $5,120, originally rece During the second month, the remaining receivables were collected in full, except for $1,280 off as uncollectible. Finals charge of $480 a. Record the entry for Sterling to record the secured borrowing. Account Name Cr. Cash Note Payable Dr. 0 0 0 0 0 b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month. Account Name Dr. Cr. Cash Refund Liability 0 0 Accounts Receivable To record collection on receivables for first month Interest Expense Note Payable Cash To record payment to Mami for the first month 0 0 0 0 0 O Dr. 0 C. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami. Account Name CF. Cash 0 Allowance for Doubtful Accounts 0 0 Accounts Receivable To record collection on receivables for second month Interest Expense 0 0 0 accounts receivable as collateral for the loan. The contract provided that Miami would advance 85% of the gross n customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, originally recorded as a refund liability. The finance charge at the end of the first month was $1,120. ectible. Final settlement was effected with the finance company, including payment of an additional finance month, ument to Miami Dr. Cr. a. Record the entry for Sterling to record the secured borrowing. Account Name Cash Note Payable 0 0 0 0 0 0 0 b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miarni for the first month. Account Name Dr. Or. Cash Refund Liability Accounts Receivable To record collection on receivables for first month Interest Expense Note Payable + 0 0 0 0 0 0 Cash 0 0 To record payment to Miami for the first month Dr. 0 0 0 0 c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami. Account Name Cr. Cash Allowance for Doubtful Accounts . Accounts Receivable 0 To record collection receivables for second month Interest Expense Note Payable Cash To record final payment to Miami 0 0 OO 0 0