On April 1, 2020, Monty Company assigns $549,600 of its accounts receivable to the Third National Bank as collateral for a $301,200 loan due July 1, 2020. The assignment agreement calls for Monty 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).

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(a)

Prepare the April 1, 2020, journal entry for Monty 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.)

Date Account Titles and Explanation Debit Credit

Apr. 1, 2020