On July $1,2014,$ Grommett Inc. assigns $$2,500,000$ of its accounts receivable to Alliance National Bank as collateral for a $$1,750,000$ note. The bank assesses a finance charge of $2\%$ of the receivables assigned and interest on the note of $8\%.$ Prepare the July $1$ journal entries for both Grommett.

Prepare the July $1,2014,$ journal entry for Sunset Inc.