Problem $5$

On December $1,2024,$ Bradley Corporation borrowed $$600,000$ at $10\%$ interest and pledged

$$700,000$ in accounts receivable as collateral. Additionally, Bradley was charged a finance fee

equal to $1\%$ of the accounts receivable assigned. At the end of December, $$500,000$ of the

assigned receivables were collected and remitted to the lender along with accrued interest.

Required:

$($a$)$ Prepare the journal entry to record the borrowing.

$($b$)$ Prepare the journal entry, if necessary, to record the assignment of the receivables.

$($c$)$ Prepare the journal entry to record the collection of the receivables.

$($d$)$ Prepare the journal entry to record the remittance of principal and interest to the lender.