The following transactions are River Co. 2019 related to trade receivables:

On February 2, 2019, River Co. borrowed $350,000 in cash from The Finance Department using $400,000 in receivables as collateral. The company issues note payable with an interest rate of 12%. Make sure that Financial wear:

1. Administration fee is 2% of the note payable value.

2. No complete money order administration fee

 

On February 21, 2019, the company's receivables of $300,000 are billed to The Finance Course in 2 ways:

1. Unsecured and incur losses of 3% of the value of receivables billed and 10% of the the value of the invoiced receivable is deducted to prevent a refund.

2. With collateral and losses of 3% of the value of receivables billed and 10% of the invoiced receivables value is retained to prevent refunds

Required:

1. Make a journal of each transaction and explain the journal!

2. Explain the calculation of receivables billed with collateral and without collateral.