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Brandon Corporation assigned its accounts receivable to the Bank of Terrace Bay on March 1, 2021 as security for a loan. During the month of March 2021, Brandon collected some of the assigned accounts. Brandon forwarded the amounts collected plus interest for the month of March to the Bank of Terrace Bay on March 31, 2021. Additional information about the assignment arrangement follows: $ $ 875,377 569,000 2% Amount of accounts receivable assigned to the Bank of Terrace Bay Amount of loan made by Bank of Terrace Bay to Brandon Corporation Amount of commission charged by Terrace Bay to Brandon (percentage of loan amount) Amount of assigned accounts collected by Brandon during March 2021 Interest rate on the loan $ 278,810 8% Brandon Corporation follows ASPE. Required: 1. Prepare journal entries for Brandon Corporation for each of the following items: a) Receipt of the loan proceeds. (1.5 marks) b) Collection of accounts receivable. (1 mark) c) Loan payment (including any interest paid). (2 marks) 2. Assume that instead of getting a loan, Brandon Corporation sold its receivables on a with-recourse basis to the Bank of Terrace Bay on March 1, 2021. Other information about this factoring arrangement follows: $ 6,615 3% Estimated fair value of recourse obligation Finance fee charged by Terrace Bay (as percentage of accounts receivable) Sale proceeds withheld by Terrace Bay for expected future returns (as percentage of accounts receivable) 4% Prepare the journal entry required for Brandon Corporation on March 1, 2021. (3.5 marks)

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