On Janurary 1st 2018, Gerry and Co. borrowed $85,000 at 8% interest and assigned $100,000 in accounts receivables as collateral. Additionally, Gerry and Co. was charged a finance fee equal to 2% of the accounts receivable assigned, and the fee was deducted from the funds transferred from the bank to Gerry and Co. on January 1st.

a.) prepare the journal entry for 1/1/18

b.) If Gerry and Co.'s fiscal year ends 1/21/18, how, if at all, should Gerry and Co. provide information about this arrangement in its annual report - beyond simply including the above amount in its financial statements?