When accounts receivable are assigned, the risk of ownership

A. and title pass to the financing company.

B. passes to the financing company, but the title is retained by the borrowing company.

C. and the title are retained by the borrowing company.

D. is retained by the borrowing company, but the title is passed to the financing company.

On June 11, Nathan, Inc. accepted a $8,000, 7%, 60-day note from a customer. On June 26, the company discounted the note at the bank at 10%. The proceeds amounted to

A. $7,992.16

B. $8,101.17

C. $8,000.00

D. $8,093.33

Exhibit 7-2 Edwards Co. purchased raw materials with a cost of $95,000 on March 2, 2015. Credit terms of 3/20, n/60 applied. Refer to Exhibit 7-2. If Edwards uses the net method and pays for the purchase on March 31, 2015, what amount is recorded in the Purchase Discounts Lost account?

(The bold information is Exhibit 7-2)

A. $4,000

B. $2,850

C. $8,000

D. $0