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Initrode Company pledges $125, 000 of its customer receivables to DC Corp as security for a loan. DC Corp lends Initrode $110, 000 in return

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Initrode Company pledges $125, 000 of its customer receivables to DC Corp as security for a loan. DC Corp lends Initrode $110, 000 in return and charges a 3% finance fee for this service. Show the journal entry made by Initrode. Describe the different effects on each of the financial statements that a secured borrowing like this one has, as oppose to a sale of the receivables in Question 2

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