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10. Moon Inc. assigns $9,000,000 of its accounts receivables as collateral for a $6 million loan with a bank. The bank assesses a 3% finance
10. Moon Inc. assigns $9,000,000 of its accounts receivables as collateral for a $6 million loan with a bank. The bank assesses a 3% finance charge on the loan amount and charges interest on the note at 6%. What would be the journal entry to record this transaction? a. Debit Cash for $5,820,000, debit Interest Expense for $180,000, and credit Accounts Receivable for $6,000,000. b. Debit Cash for $5,820,000, debit Interest Expense for $180,000, and credit Notes Payable for $6,000,000. C. Debit Cash for $3,880,000 debit Interest Expense for $180,000, debit Due from Bank for $3,000,000, and credit Accounts Receivable for $9,000,000. d. Debit Cash for $5,460,000, debit Interest Expense for $540,000, and credit Notes Payable for $6,000,000. 0
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