On 1/1, $400,000 of specific accounts receivable of Annie's Animal Shop are assigned as collateral on a loan with the Bank. Annie's Animal Shop and the Bank both agreed to the following estimates: Sales discounts: $10,000, Sales returns $21,000, and Credit Loss: $19,000. The loan is due in 5 years and has an interest rate of 10%. The finance charge is 1%.

a) How would Annie's Animal Shop be affected?

b) How would the Bank be affected?