Scotiabank approved a $75,000 line of credit for Curved Comfort Furniture on the security of its accounts

Question:

Scotiabank approved a $75,000 for Curved Comfort Furniture on the security of its accounts receivable. Curved Comfort drew down $30,000 on October 7, another $15,000 on November 24, and $20,000 on December 23. The bank debited interest at the rate of prime plus 1.5% from the business’s bank account on the fifteenth of each month. The prime rate was 6.25% on October 7, and dropped by 0.25% on December 17. Present a loan repayment schedule showing details of transactions up to and including January 15.
Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...