Recelvables On June 30, 2018, the High Five Surfboard Company had outstanding ac

Question

Recelvables On June 30, 2018, the High Five Surfboard Company had outstanding accounts recelvable of $520,000. On July 1,2018, the company borrowed $4 70000 from the Equitable Finance Corporation and signed a promissory note. Interest at 0% s payable monthly The company assigned spedific recelvables totaling $620000 as collateral for the loan Equitable Finance charges a finance fee equal to 1.6% of the accounts receivable assigned. Required: Prepare the journal entry to record the borrowing on the books of High Five Surfboard. Of no entry is required for trensaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the borrowing Note: Enter debirs betore crestits Date July 01, 2018 Clear entry Record entry

Explanation / Answer

1-Jul-16 Cash 462480 Finance charge expense 7520 =470000*1.6%         Liability ­ financing arrangement 470000

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