On April $1,2025,$ Marigold Company assigns $$505,300$ of its accounts receivable to the Third National Bank as collateral for a $$327,200$ loan due July $1,2025.$ The assignment agreement calls for Marigold to continue to collect the receivables. Third National Bank assesses a finance charge of $4\%$ of the accounts receivable, and interest on the loan is $10\%($a realistic rate of interest for a note of this type$).$

$($a$)$

Your answer is correct.

Prepare the April $1,2025,$ journal entry for Marigold Company. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

Apr. $1,2025$

Interest Expense

Notes Payable

eTextbook and Media

List of Accounts

Attempts: $1$ of $2$ used

$($b$)$

Prepare the journal entry for Marigold's collection of $$378,200$ of the accounts receivable during the period from April $1,2025,$ through June $30,2025.($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.$)$