On October $1,2024,$ Watergate Hotels borrowed $$400,000$ at $12\%$ interest and pledged $$500,000$ in accounts receivables as collateral. Additionally, Watergate was charged a finance fee equal to $1\%$ of the accounts receivable assigned. At the end of December, $$300,000$ of the assigned receivables were collected and remitted to the lender along with accrued interest.

Required:

Prepare journal entries to record the borrowing, the assignment of receivables, the collection on the receivables, and the recognition of interest expense.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.