Scotiabank Approved a $75,000 Line of Credit for Curved Comfort

Essay

Scotiabank approved a $75,000 line of credit for Curved Comfort Furniture on the security of its accounts receivable. Curved Comfort drew down $30,000 on October 7, another $15,000 on November 24, and $20,000 on December 23. The bank debited interest at the rate of prime plus 1.5% from the business's bank account on the fifteenth of each month. The prime rate was 6.25% on October 7, and dropped by 0.25% on December 17. Present a loan repayment schedule showing details of transactions up to and including January 15.