Kitt Company borrows $800,000 from Neville Capital by issuing an 8-year (96-month), 12% note payable. Interest is due and payable each month based on the outstanding balance at the beginning of the month. Kitt assigns $850,000 of its accounts receivable as collateral for the lending arrangement. Prepare the journal entries to record the financing arrangement on Kitt's books. Let's begin with the transaction to borrow the funds. (Record debits first, then credits. Exclude explanations from any journal entries.) Kitt Company borrows $800,000 from Neville Capital by issuing an 8-year (96-month), 12% note payable. Account At Issuance of Note