On April $1,2025,$ Swifty Company assigns $$549,600$ of its accounts receivable to the Third National Bank as collateral for a

$$301,200$ loan due July $1,2025.$ The assignment agreement calls for Swifty 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 partially correct.

Prepare the April $1,2025,$ journal entry for Swifty 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

Apr. $1,$

$2025$

Cash

Interest Expense

Debit

Credit