Vince Company borrows $790,000 from Hannibal Capital by issuing an8-year (96-month), 13% note payable. Interest is due and payable each month based on the outstanding balance at the beginning of the month. Vince assigns $848,000 of its accounts receivable as collateral for the lending arrangement. Assume that during the first month after the financing iscompleted, Vince collects $248,000 of the assigned accounts receivable. Vince remits this amount to Hannibal Capital along with the payment of 1 month's interest.

Part A. Prepare the journal entry to record the cash collection on the receivables.

Part B. Prepare the journal entry to record the payment to Hannibal.