[Solved] On October 1,2016,Watergate Hotels Borrowed $400,000 at 12% Interest and Pledged

Question 143
Essay

On October 1,2016,Watergate Hotels borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivables as collateral.Additionally,Watergate was charged a finance fee equal to 1% of the accounts receivable assigned.At the end of December,$300,000 of the assigned receivables were collected and remitted to the lender along with accrued interest.
Required:
Prepare journal entries to record the borrowing,the assignment of receivables,the collection on the receivables,and the recognition of interest expense.

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

Business

Explore our library and get Accounting Homework Help with various study sets and a huge amount of quizzes and questions

3.5K

Study sets

66.5K

Quizzes

5.9M

Questions

Upload material to get free access

Upload Now Upload Now
Upload Now

Invite a friend and get free access

Upload NowInvite a friend
Invite a friend

Subscribe and get an instant access

See our plansSee our plans
See our plans