16.9k views
1 vote
Exercise 7-15On April 1, 2020, Bridgeport Company assigns $505,300 of its accounts receivable to the Third National Bank as collateral for a $327,200 loan due July 1, 2020. The assignment agreement calls for Bridgeport to continue to collect the receivables. Third National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Prepare the April 1, 2020, journal entry for Bridgeport Company.

1 Answer

1 vote

Answer:

Please see attachment .

Step-by-step explanation:

Please see attachment .

Exercise 7-15On April 1, 2020, Bridgeport Company assigns $505,300 of its accounts-example-1
User BazookaDave
by
6.5k points