Question:On January 1, Davis College assigned $500,000 of Accounts Receivable to the Scholastic Finance Company. It gave a 14% note for $450,000 representing 90% of the assigned accounts and received proceeds of $432,000 after deduction of a Scholastic, including interest for 1 month on the remittance. By what amount will Accounts Receivable be assigned and notes payable decreased?
A/R Assigned Notes Payable 

A $80,000 $74,750 
B $80,000 $80,000 
C $72,000 $74,750 
D $74,750 $80,000 

+ Answer
C 

+ Explanation
answer not sure

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Md. Habib Ullah

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