TOPIC: Receivable Financing (Assignment of AR)

At the beginning of July, MedLab Inc. assigned $2,000,000 out of its $10,000,000 outstanding accounts receivable to BPI in consideration of a $1,500,000, 12% loan. BPI charged the company 5% of the loan principal as service charge. By the end of July, MedLab collected $600,000 cash from the assigned accounts net of a $50,000 sales discount. Also, by the end of July, the company accepted a customer return of merchandise amounting to $60,000.

By the end of August, MedLab collected another $700,000 from the assigned accounts after $40,000 sales discount. The company also wrote-off $80,000 as worthless accounts by the end of August.

By the end of September, MedLab collected another $300,000 without sales discounts. The agreement with the bank provides a monthly remittance from customer collections and it will cover both the principal and interest.

REQUIRED:

How much is the remittance of MedLab Inc. to the bank by the end of September?