On April 1, 2020,PearlCompany assigns $547,300of its accounts receivable to the Third National Bank as collateral for
Fantastic news! We've Found the answer you've been seeking!
Question:
On April 1, 2020,PearlCompany assigns $547,300of its accounts receivable to the Third National Bank as collateral for a $306,000loan due July 1, 2020. The assignment agreement calls forPearlto continue to collect the receivables. Third National Bank assesses a finance charge of3% of the accounts receivable, and interest on the loan is10% (a realistic rate of interest for a note of this type).
Prepare the journal entry forPearl's collection of $377,600of the accounts receivable during the period from April 1, 2020, through June 30, 2020
Posted Date: