Question

On April 1, 2020, Wildhorse Company assigns $549,400 of its accounts receivable to the Third National Bank as collateral for a $301,600 loan due July 1, 2020. The assignment agreement calls for Wildhorse 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). Collapse question part (a) Partially correct answer. Your answer is partially correct. Try again. Prepare the April 1, 2020, journal entry for Wildhorse 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

List of accounts

Exercise 7-15 (Part Level Submission)

Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Allowance for Sales Returns and Allowances Bad Debt Expense Cash Cash Over and Short Due from Factor Due to Customer Discount on Notes Payable Discount on Notes Receivable Equity Investments Freight-In Freight-Out Gain on Disposal of Land Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Disposal of Investment Loss on Sale of Receivables Maintenance and Repairs Expense Miscellaneous Expenses No Entry Notes Payable Notes Receivable Office Expense Owner's Drawings Petty Cash Postage Expense Prepaid Postage Purchase Discounts Recourse Liability Sales Discounts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Service Revenue Supplies Supplies Expenses Unearned Sales Revenue

Answer 1

credit Answer: Journal entry Date particulars LF Debit 2020 cash. Ale : Dy $285,118 Finance charge Ale ($549400x37) Dr $16,482 To Noles payable Being to record the issuance of note] Apr-/ $301,600