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On October 1, 2020, Culver, Inc. assigns $1,242,400 of its accounts receivable to Larkspur National Bank as collateral for a $722,600 note. The bank assesses
On October 1, 2020, Culver, Inc. assigns $1,242,400 of its accounts receivable to Larkspur National Bank as collateral for a $722,600 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 10%. Prepare the October 1 journal entries for both Culver and Larkspur
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