Computation of cash collection from notes.
On september1, Riva Co assigns specific receivables totaling $750,000 to pacific Bank as collateral on a $625,000, 12 percent note. Riva Co will continue to collect the assigned accounts receivable. Pacific also assessed a 2 percent service charge on the total accounts receivable assigned. Riva Co is to make monthly payments to pacific with cash collected on assigned accounts receivable. Collections of assigned accounts during September totaled $260,000 less cash discounts of $3,500. What amount is owed to pacific by Riva Co. for September collections plus accrued interest on the note to September 30?