Sheffield Corp. assigns $4400000 of its accounts receivables as collateral for a $3.00 million loan with a bank. The bank assesses a 2% finance charge on the loan amount and charges interest on the note at 7%. What would be the journal entry to record this transaction?

Debit Cash for $2730000, debit Interest Expense for $270000, and credit Notes Payable for $3000000.

Debit Cash for $2940000, debit Interest Expense for $60000, and credit Accounts Receivable for $3000000.

Debit Cash for $2940000, debit Interest Expense for $60000, and credit Notes Payable for $3000000.

Debit Cash for $1830200, debit Interest Expense for $60000, debit Due from Bank for $1400000, and credit Accounts Receivable for $4400000.