On March 1, 2021, Crane Pasta Company assigns $1404000 of its accounts receivable to Bank of China as collateral for a $1002400 note. Bank of China assesses a finance charge of 1 percent of the accounts receivable and interest on the note of 12 percent. Which of the following is correct regarding this transaction? Bank of China has purchased Crane Pasta's receivables. O On March 1, 2021, Bank of China will credit Gain on Purchase of Receivables for $34088. O On March 1, 2021, Bank of China will credit Due from Factor for $20048. On March 1, 2021, Bank of China will credit Interest Revenue for $14040.

On March 1, 2021, Crane Pasta Company assigns $1404000 of its accounts receivable to Bank of China as collateral for a $1002400 note. Bank of China assesses a finance charge of 1 percent of the accounts receivable and interest on the note of 12 percent. Which of the following is correct regarding this transaction? Bank of China has purchased Crane Pasta's receivables. On March 1,2021, Bank of China will credit Gain on Purchase of Receivables for $34088. On March 1, 2021, Bank of China will credit Due from Factor for $20048. On March 1, 2021, Bank of China will credit Interest Revenue for $14040