a)

b)

prepare the journal entry for vahgn's collection of of 350,000 of the a/r during the period april 1 to june 30, 2023

c)

on july 1, 2023, vaugn paid first national bank the entire amount that was due on the loan

On April 1, 2023, Vaughn Corporation assigns $510,000 of its accounts receivable to First National Bank as collateral for a $190,000 loan that is due July 1,2023. The assignment agreement calls for Vaughn to continue to collect the receivables. First National Bank assesses a finance charge of 2% of the accounts receivable, and interest on the loan is 10%, a realistic rate for a note of this type. (a) Prepare the April 1,2023 journal entry for Vaughn. (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. List all debit entries before credit entries.)