On October 1, 2017 Chung. Inc. assigns $1,000,000 of its accounts receivable to Seneca National bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables assigned and intereest on the note of 9% Prepare the Journal entry for Chung Inc. Notes Payable 750,000 Interest Expense 20.000 Cash 730,000 Notes Payable O Interest Expense Cash 730,000 20,000 750.000 Cash 730,000 O Interest Expense 20,000 Notes Payable 750,000 750,000 Cash 20,000 Interest Expense Notes Payable 730,000

On October 1, 2017 Chung. Inc. assigns $1,000,000 of its accounts receivable to Seneca National bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables assigned and intereest on the note of 9% Prepare the Journal entry for Chung Inc. Notes Payable 750,000 Interest Expense 20.000 Cash 730,000 Notes Payable O Interest Expense Cash 730,000 20,000 750.000 Cash 730,000 O Interest Expense 20,000 Notes Payable 750,000 750,000 Cash 20,000 Interest Expense Notes Payable 730,000

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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