Answer:
See all the entries below.
Explanation:
a. Record the entry for Sterling to record the secured borrowing. 
The entries will look as follows:
<u>Account Name                                    Debit ($)           Credit ($)    </u>
Cash (768,000 * 85%)                       652,800 
   Note Payable                                                              652,800 
<em><u>(To record the secured borrowing.)                                                    </u></em>
b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month. 
The entries will look as follows:
<u>Account Name                                    Debit ($)           Credit ($)      </u>
Cash                                                   504,320 
Refund Liability                                    20,480 
   Accounts Receivable                                                 524,800
<u><em>(To record collection on receivables for first month.)                         </em></u>
Interest Expense                                     4,480
Note Payable                                      499,840 
   Cash                                                                             504,320
<u><em>(To record payment to Miami for the first month.)                               </em></u>
c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami. 
The entries will look as follows:
<u>Account Name                                    Debit ($)            Credit ($)     </u>
Cash                                                    238,080 
Allowance for Doubtful Debt                  5,120 
   Accounts Receivable (w.1)                                          243,200 
<u><em>(To record collection on receivables for second month Interest.)     </em></u>
Expense                                                   1,920 
Note Payable                                       151,040 
   Cash (w.2)                                                                      152,960 
<u><em>(To record final payment to Miami.)                                                      </em></u>
Workings:
w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200
w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960