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Prepare the April journal entry for Monty Company

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Reference no: EM132619254

Question - On April 1, 2020, Monty Company assigns $549,600 of its accounts receivable to the Third National Bank as collateral for a $301,200 loan due July 1, 2020. The assignment agreement calls for Monty 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).

Required - Prepare the April 1, 2020, journal entry for Monty Company.

Reference no: EM132619254

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