On October 1, 2020, Shamrock, Inc. assigns $1,160,700 of its accounts receivable to Bridgeport National Bank as collateral for a $747,900 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Shamrock and Bridgeport. (If no entry is required, select "No Entry" for the account titles and enter O 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 Shamrock, Inc. Oct. 1 Bridgeport National Bank Oct. 1
On October 1, 2020, Shamrock, Inc. assigns $1,160,700 of its accounts receivable to Bridgeport National Bank as collateral for a $747,900 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Shamrock and Bridgeport. (If no entry is required, select "No Entry" for the account titles and enter O 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 Shamrock, Inc. Oct. 1 Bridgeport National Bank Oct. 1
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...
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