Make the April journal entry for Sage Company

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Question - On April 1, 2020, Sage Company assigns $525,800 of its accounts receivable to the Third National Bank as collateral for a $342,800 loan due July 1, 2020. The assignment agreement calls for Sage to continue to collect the receivables. Third National Bank assesses a finance charge of 2% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).

Required - Make the April 1, 2020, journal entry for Sage Company.

Reference no: EM132619714

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