Question
A company assigns $3,000,000 of its accounts receivables as collateral for a $1 million, 8% loan with a bank. The company also pays a finance
A company assigns $3,000,000 of its accounts receivables as collateral for a $1 million, 8% loan with a bank. The company also pays a finance fee of 1% on the transaction at the time of the receipt of the loan proceeds.
Prepare the journal entry to recognize the assignment of accounts receivable, the receipt of the loan proceeds, and the payment of the finance fee.
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
71220720, 78110890, 9780071220729, 978-0078110894
