On April $1,2025,$ Waterway Company assigns $$503,700$ of its accounts receivable to the Third National Bank as collateral for a $$340,000$ loan due July $1,2025.$ The assignment agreement calls for Waterway to continue to collect the receivables. Third National Bank assesses a finance charge of $3\%$ of the accounts receivable, and interest on the loan is $10\%($a realistic rate of interest for a note of this type$).$

$($a$)$

Prepare the April $1,2025,$ journal entry for Waterway Company. $($If no entry is required, select $"$No Entry" for the account titles and enter $O$ 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. $1,$

$2025$

Cash

Interest Expense