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QUESTION 4 Accounts receivable in the amount of RM250,000 were assigned to the Fast Finance Company by Marsh Bhd., as security for a loan of
QUESTION 4 Accounts receivable in the amount of RM250,000 were assigned to the Fast Finance Company by Marsh Bhd., as security for a loan of RM200,000. The finance company charged a 4% commission on the face amount of the loan, and the note bears interest at 9% per year. During the first month, Marsh Bhd collected RM130,000 on assigned accounts. This amount was remitted to the finance company along with one month's interest on the note. REQUIRED: Make all the entries for Marsh Bhd. associated with the transfer of the accounts receivable, the loan, and the remittance to the finance company
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