The transactions listed below relate to Berkshire Company:

Jan 1Berkshire Company borrows cash from a finance company and assigns $45,000 of accounts receivable, without notification, as collateral.A note is signed and the finance company advances an amount equal to 75% of the book value of the receivables assigned.The note requires that interest at a rate of 24% (per annum) be paid at the end of each month, on the outstanding balance of the note at the beginning of the month.

JanDuring the month of January, $20,500 of the assigned receivables is collected, less sales returns of $800.

Jan 31Berkshire remits the cash collected to the finance company.

FebDuring February, the remainder of the assigned receivables is collected, except for $200, which is written off as uncollectible.(Berkshire uses the estimation process to account for bad debts)

Feb 28Berkshire remits the balance of the note plus interest to the finance company.

Prepare the journal entries to record all of the above transactions.