On April 1, 2020, Sweet Company assigns $501,100 of its accounts receivable to the Third National Bank as collateral for a $316,800 loan due July 1, 2020. The assignment agreement calls for Sweet to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). (a) Prepare the April 1, 2020, journal entry for Sweet Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 1, 2020 eTextbook and Media List of Accounts Attempts: 0 of 3 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above.
Journal entry in books of Sweet company on 01st April 2020 is given below
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