On December 1, 2017, Marin, Inc. assigns $ 3,380,000 of its accounts receivable to Sweet Acacia Bank as collateral for a $ 2,028,000note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 8%.Prepare the December 1 journal entries for both Marin and Sweet Acacia. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCreditMarin, Inc.December 1Sweet Acacia BankDecember 1

It will deduct by bank in payment of notes.

Answered: On December 1, 2017, Marin, Inc.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On April 17, 2016, Westside Co. accepted a 65,000, 8%, 90-day note from a customer. On June 11, the note was discounted at 10% under a conditional sale. At maturity date, the note was dishonored and the bank charged 1,250 protest fee. If on July 26, 2016, the customer pays the account due plus 8% interest. How Much Should Westside report as Loss from Notes Receivable Discounted and the total amount received on July 26,2016?
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Please provide correct solution
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