On June 30, 2021, the High Five Surfboard Company had outstanding accounts receivable of $700,000. On July 1, 2021, the company borrowed $550,000 from the Equitable Finance Corporation and signed a promissory note. Interest at 12% is payable monthly. The company assigned specific receivables totaling $700,000 as collateral for the loan. Equitable Finance charges a finance fee equal to 1.2% of the accounts receivable assigned. Required: Prepare the journal entry to record the borrowing on the books of High Five Surfboard. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the borrowing.