On October 1, 2020, Sweet, Inc. assigns $1,226,300 of its accounts receivable to Pharoah National Bank as collateral for a $704,000 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 8%.

Prepare the October 1 journal entries for both Sweet and Pharoah. (If no entry is required, select "No Entry" for the account titles and enter 0 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

Sweet, Inc.

Oct. 1

Pharoah National Bank

Oct. 1