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On October 1, 2020, Stellar, Inc. assigns $1,278,700 of its accounts receivable to Pearl National Bank as collateral for a $735,900 note. The bank assesses
On October 1, 2020, Stellar, Inc. assigns $1,278,700 of its accounts receivable to Pearl National Bank as collateral for a $735,900 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 8%. Prepare the October 1 journal entries for both Stellar and Pearl. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Stellar, Inc. Oct. 1 Cash 480160 Interest Expense 255740 Notes Payable 735900 Pearl National Bank Oct. 1 Notes Receivable Cash Interest Revenue
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