Question
On October 1, 2017, Gomez Inc. assigns $1,690,000 of its accounts receivable to Ottawa National Bank as collateral for a $1,164,000 note. The bank assesses
On October 1, 2017, Gomez Inc. assigns $1,690,000 of its accounts receivable to Ottawa National Bank as collateral for a $1,164,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 6%. Prepare the October 1 journal entries for both Gomez and Ottawa.
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
17th edition
978-0273778172, 027377817X, 978-1292080505
