Answer
Been the trade accounts receivable are assigned, Moresan should account for the subsequent collections on the assigned trade accounts receivable by debiting Cash account and crediting Accounts Receivable. The cash collected should then be remitted to Indigo Finance until the amount advanced by Indigo Finance is settled.
Work Step by Step
The payments to Indigo Finance consist of both interest and principal with interest computed at the rate of 8% on the balance outstanding.
