On April 1, 2017, Ibrahim Corporation assigns $400,000 of its accounts receivable to First National Bank as

Question:

On April 1, 2017, Ibrahim assigns $400,000 of its to First National Bank as collateral for a $200,000 loan that is due July 1, 2017. The assignment agreement calls for Ibrahim to continue to collect the receivables. First National Bank assesses a finance charge of 3% of the and interest on the loan is 10%, a realistic rate for a note of this type.
Instructions
(a) Prepare the April 1, 2017 journal entry for Ibrahim Prepare the journal entry for Ibrahim's collection of $350,000 of the during the period April 1 to June 30, 2017.
(c) On July 1, 2017, Ibrahim paid First National Bank the entire amount that was due on the loan.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...