Question
On October 1, 2020, Gomez Inc. assigns $2,000,000 of its accounts receivable to Ottawa National Bank as collateral for a $1,500,000 note. The bank assesses
On October 1, 2020, Gomez Inc. assigns $2,000,000 of its accounts receivable to Ottawa National Bank as collateral for a $1,500,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 7%. Prepare the October 1 journal entries for both Gomez and Ottawa.
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The Wall Street Mba
Authors: Reuben Advani
2nd Edition
007178831X, 9780071788311
