softa company borrows 850 000 from deer financing associates by securing a revolving 4374271

Softa Company borrows $ 850,000 from Deer Financing Associates by securing a revolving line of credit at a 6% interest rate on April 15. Interest is due and payable at the end of each month based on the outstanding balance at the beginning of the month. Softa assigns $ 900,000 of its accounts receivable as collateral for the lending arrangement. Assume accounts receivable are collected at the end of the month and the proceeds are remitted to Deer at the end of the month. Below is a listing of payments collected on accounts receivable. Month Accounts Receivable Collected April ……………………………. $ 100,000 May …………………………….. 487,000 June …………………………….. 113,000 Required a. Compute the balance of notes payable at the end of each month. b. Prepare the necessary journal entries for these transactions. c. If the accounts receivable had been pledged as collateral, what entry would be made at April 15? View Solution:
Softa Company borrows 850 000 from Deer Financing Associates by

"Looking for a Similar yet Original Assignment? Order now and Get a Discount!

Get better grades effortlessly,
It’s cheaper than you might think

Effortlessly get the essays and grades you need. You can now get any essay, on any subject and at ANY deadline with just 10 minutes of your time (or less). Your professor will love you for it!