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On April 1 , 2 0 2 5 , Marigold Company assigns $ 5 0 5 , 3 0 0 of its accounts receivable to

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 3 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.)
Account Titles and Explanation
Debit
Credit
Bad Debt Expense
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