Recording a secured borrowing On April 1, 2020, NYC Corporation secures a loan with a finance company, using its accounts receivable of $50,000 as collateral for the loan. NYC Corporation agrees to remit customer collections as payments on the loan. Loan proceeds are 80% of the receivables less a 2% finance charge on the balance of the assigned receivables. In addition, the finance company charges 10% interest on the unpaid loan balance, payable at the end of each month. Record the April 1, 2020, entry for NYC Corporation. Dr. Cr. 0 Date Account Name April 1 Cash Loss on Sale of Receivables Accounts Receivable 39,000 11,000 x X 0 0 50,000 x