Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On October 1, 2020, Shamrock, Inc. assigns $1.9 million of its accounts receivable to Alberta Provincial Bank as collateral for a $2.6- million loan evidenced
On October 1, 2020, Shamrock, Inc. assigns $1.9 million of its accounts receivable to Alberta Provincial Bank as collateral for a $2.6- million loan evidenced by a note. The bank's charges are as follows: a finance charge of 3% of the assigned receivables and an interest charge of 11% on the loan. Prepare the October 1 journal entries for both Shamrock and Alberta Provincial Bank. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Shamrock Inc. Oct. 1 Alberta Provincial Bank Oct. 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started