8.6.1

On December 1, 2017, Windsor, Inc. assigns $5,820,000 of its accounts receivable to Sweet Acacia Bank as collateral for a $3,492,000 note. The bank assesses a finance charge of 1% of the receivables assigned and interest on the note of 8%. Prepare the December 1 journal entries for both Windsor and Sweet Acacia. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Debit Credit Account Titles and Explanation Windsor, Inc. December 1 Sweet Acacia Bank December 1