On April 1, 2023, Blue Corporation assigns $490,000 of its accounts receivable to First National Bank as collateral for a $200,000 loan that is due July 1, 2023. The assignment agreement calls for Blue to continue to collect the receivables. First National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 8%, a realistic rate for a note of this type. (a) Prepare the April 1, 2023 journal entry for Blue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
On April 1, 2023, Blue Corporation assigns $490,000 of its accounts receivable to First National Bank as collateral for a $200,000 loan that is due July 1, 2023. The assignment agreement calls for Blue to continue to collect the receivables. First National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 8%, a realistic rate for a note of this type. (a) Prepare the April 1, 2023 journal entry for Blue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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12, please read the question carefully and follow the instructions. thanks
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