On October 1, 2017 Chung. Inc. assigns $1,000,000 of its accounts receivable to Seneca National bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 9% Prepare the Journal entry for Seneca National Bank

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Q: 5. On October 1, 2021, Gomez Inc. assigns $1,600,000 of its accounts receivable to Ottawa National…

A: Finance charge (Interest expense ) = $1,600,000×2% = $32,000

Q: On March 1, 2021, X Co. assigns $60,000 of its accounts receivable as a collateral for a loan from…

A: Interest = 47000* 1% = 470 Principal repayment = 10,000

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A: Working note: Computation of finance charges: Finance charges=Accounts receivable assigned×Rate of…

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A:

Q: On December 1, 2016, Old Car Co. borrowed money at the bank by signing a 90-day non-interest-bearing…

A: Working note:

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A:

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Q: On October 1, 2017 Chung. Inc. assigns $1,000,000 of its accounts receivable to Seneca National bank…

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Q: On December 1, 2017, Marin, Inc. assigns $ 3,380,000 of its accounts receivable to Sweet Acacia Bank…

A: It will deduct by bank in payment of notes.

Q: On September 1, QUEROL COMPANY assigns specific receivables totaling P750,000 to Davao Bank as…

A: The interest expense may be a non-operating expense shown on the operating statement. It’s primarily…

Q: On November 15, FDN Trading signed a P360,000, 12 percent, 180-day note payable with the bank. The…

A: Solution: Discount amount = P360,000 * 12%*180/360 = P21,600

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Q: On December 1, 2016, Bamboo Company assigned specific accounts receivable totaling P4,000,000 as…

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Q: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank.…

A: Formula: Cash received = Maturity value - Discount

Q: On October 1, 2017, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National…

A: In the books of Chung, Inc.: Date Account Titles and Explanation Debit Credit October 1, 2017…

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A: Accounts receivable:Accounts receivable refers to the amounts to be received within a short period…