Please can anyone help me, i understand school is closed but i got this question incorrect in my last exam and i need to understand what am i doing wrong and how do i find the correct answer.
On September 1, Riva Co. assigns specific receivables totaling $750,000 to Pacific Bank as collateral on a $625,000, 12 percent note. Riva Co. will continue to collect the assigned accounts receivable. Pacific also assesses a 2 percent service charge on the total accounts receivable assigned. Riva Co. is to make monthly payments to Pacific with cash collected on assigned accounts receivable. Collections of assigned accounts during September totaled $260,000 less cash discounts of $3,500. What amount is owed to Pacific by Riva Co. for September collections plus accrued interest on the note to September 30?
Debit Bank (98%) 625,000 15,000 . = $610,000
Debit Finance charges (2%) 750,000 * .02 = $15,000
Credit Pacific Bank (100%) ....= $625,000
To record funds provided by bank
Debit Accounts receivable assigned .. = $750,000
Credit accounts receivable . = $750,000
Debit Cash 260,000 3,500 ... = $256,500
Debit Discount allowed .. .......= $3,500
Credit accounts receivable assigned = $260,000
Debit Interest expense =
Debit Pacific Bank =
Credit Cash .. .= $256,000
Was i on the right track. Please help.