prepare a journal entry for waterway company

On Aprii 1, 2025, Waterway Company assigns $503,700 of its accounts receivable to the Third National Bank as collateral for a $340.000 loan due July 1, 2025. The assignment agreement calls for Waterway to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). On Aprii 1, 2025, Waterway Company assigns $503,700 of its accounts receivable to the Third National Bank as collateral for a $340.000 loan due July 1, 2025. The assignment agreement calls for Waterway to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type)