On April 1, 2014, Rasheed Company assigns $540,400 of its accounts receivable to the Third National Bank as collateral for a $346,000 loan due July 1, 2014. The assignment agreement calls for Rasheed Company to continue to collect the receivables. Third National Bank assesses a finance charge of 2% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).

Prepare the April 1, 2014, journal entry for Rasheed Company.

Date

Account Titles and Explanation

Debit

Credit

april 1?2014 __________________________ _____ _____

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