On December 1, 2022, Peartastic, Inc. assigns $2,000,000 of its accounts receivable to Fourth National Bank as collateral for a $1,200,000 note. The bank assesses a finance charge of 1% of the receivables assigned and interest on the note of 6%. Prepare the December 1 journal entries for both Peartastic and Fourth National. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

On December 1, 2022, Peartastic, Inc. assigns $2,000,000 of its accounts receivable to Fourth National Bank as collateral for a $1,200,000 note. The bank assesses a finance charge of 1% of the receivables assigned and interest on the note of 6%. Prepare the December 1 journal entries for both Peartastic and Fourth National. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Peartastic, Inc. December 1 Fourth National Bank December 1