Somer's Fence Company borrowed $ 270 comma 000 from Harkin Capital by issuing a 3-year (36-month), 6 % note payable. Somer's uses $ 290 comma 000 of its accounts receivable as collateral for the lending arrangement, transferring the right to the receivable payments if Somer's defaults on the loan. Somer's services the accounts receivable, sending bills and collecting the payment from customers. Somer's must pay Harkin $ 8 comma 100 at the end of month regardless of the amount of the receivables it collects. At the end of the first month, Somer's has collected $ 7 comma 300 of the receivables that are collateral for the loan and pays $ 8 comma 100 to Harkin plus interest