Sheridan Company assigns $4550000 of its accounts receivables as collateral for a $3.07 million loan with a bank. The bank assesses a 2% finance charge on the loan amount and charges interest on the note at 6%. What would be the journal entry to record this transaction?

Debit Cash for $3008600, debit Interest Expense for $61400, and credit Notes Payable for $3070000.

Debit Cash for $1924900, debit Interest Expense for $61400, debit Due from Bank for $1480000, and credit Accounts Receivable for $4550000.

Debit Cash for $2824400, debit Interest Expense for $245600, and credit Notes Payable for $3070000.

Debit Cash for $3008600, debit Interest Expense for $61400, and credit Accounts Receivable for $3070000.