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Assigning Accounts Receivable On January 1, 2022, Logan Inc. assigns $3,000,000 of its accounts receivable as collateral for a $1,500,000 loan with First City Bank.
- Assigning Accounts Receivable
On January 1, 2022, Logan Inc. assigns $3,000,000 of its accounts receivable as collateral for a $1,500,000 loan with First City Bank. The bank assesses a 3% finance charge on the loan amount and charges interest on the note at 6%.
Prepare the January 1, 2022, journal entry.
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