Reference no: EM132708640

Question - On April 1, the AIM Inc. assigned 800,000 of accounts receivable to a bank under a nonnotifcation arrangement. The bank advances 80% less a service charge of 5,000. AIM Inc. signed a promissory note that provides for interest of 1% per month on the unpaid balance. On April 5, AIM Inc. issued a credit memo for sales return to a customer whose account was assigned for 50,000. On April 10, the company collected 300,000 of the assigned accounts less 2% discount. On April 30, AIM Inc. remitted the total collections to the bank plus interest for 1 month. On May 7, 30,000 worth of assigned accounts proved to be worthless. On May 20, AIM Inc. collected 300,000 of the assigned accounts. On May 30, the company remitted the total amount due the bank to pay off the loan balance plus interest for one month. What is the remaining balance of assigned accounts receivable to be transferred back to unassigned accounts receivables?