Cullumber Inc. assigns $4728000 of its accounts receivables as collateral for a $3.30 million loan with a bank. The bank assesses a 3% finance charge on the loan amount and charges interest on the note at 6%. What would be the journal entry to record this transaction? O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Accounts Receivable for $3300000 O Debit Cash for $3003000, debit Interest Expense for $297000, and credit Notes Payable for $3300000 O Debit Cash for $1890800, debit Interest Expense for $99000, debit Due from Bank for $1428000, and credit Accounts Receivable for $4728000 O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Notes Payable for $3300000
Cullumber Inc. assigns $4728000 of its accounts receivables as collateral for a $3.30 million loan with a bank. The bank assesses a 3% finance charge on the loan amount and charges interest on the note at 6%. What would be the journal entry to record this transaction? O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Accounts Receivable for $3300000 O Debit Cash for $3003000, debit Interest Expense for $297000, and credit Notes Payable for $3300000 O Debit Cash for $1890800, debit Interest Expense for $99000, debit Due from Bank for $1428000, and credit Accounts Receivable for $4728000 O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Notes Payable for $3300000
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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![Cullumber Inc. assigns $4728000 of its accounts receivables as collateral for a $3.30 million loan with a bank. The bank assesses a 3%
finance charge on the loan amount and charges interest on the note at 6%. What would be the journal entry to record this transaction?
O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Accounts Receivable for $3300000
O Debit Cash for $3003000, debit Interest Expense for $297000, and credit Notes Payable for $3300000
O Debit Cash for $1890800, debit Interest Expense for $99000, debit Due from Bank for $1428000, and credit Accounts
Receivable for $4728000
O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Notes Payable for $3300000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb896c165-d0a7-4e75-bc28-2507707f26c1%2Fd571e7d5-0fad-4aa6-b373-ead53e76919b%2Ftj3wcmt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cullumber Inc. assigns $4728000 of its accounts receivables as collateral for a $3.30 million loan with a bank. The bank assesses a 3%
finance charge on the loan amount and charges interest on the note at 6%. What would be the journal entry to record this transaction?
O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Accounts Receivable for $3300000
O Debit Cash for $3003000, debit Interest Expense for $297000, and credit Notes Payable for $3300000
O Debit Cash for $1890800, debit Interest Expense for $99000, debit Due from Bank for $1428000, and credit Accounts
Receivable for $4728000
O Debit Cash for $3201000, debit Interest Expense for $99000, and credit Notes Payable for $3300000
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