On January 31, Baker Co. had outstanding Accounts Receivable…
On January 31, Baker Co. had outstanding Accounts Receivable of $400,000. On February 1, Baker borrowed $250,000 from Secure Finance Company and signed a promissory note. Interest of 9% is payable monthly. Baker assigned specific receivables totaling $400,000 as collateral for the loan. Secure Finance charges a finance fee of 2% of the Accounts Receivable assigned. How much cash will Baker actually received from Secure Finance after assigning the receivables?