On April 1, 2017, Marin Company assigns $549200 of its accounts receivable to the ThirdNational Bank as collateral for a $305600 loan due July 1, 2017. The assignment agreementcalls for Rasheed Company to continue to collect the receivables. Third National Bank assesses afinance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rateof interest for a note of this type).(List multiple debit/credit entries in order of magnitude.)Instructions
(a)Prepare the April 1, 2017, journal entry for MarinCompany
(b)Prepare the journal entry for Marin collection of $362200 of the accounts receivableduring the period from April 1, 2017, through June 30, 2017
(c)On July 1, 2017, Marin paid Third National all that was due from the loan it secured onApril 1, 2017
(a)Prepare the April 1, 2017, journal entry for MarinCompany
| No | Descrption | Debit $ | Credit $ |
| a | Cash | 289124 | |
| Finance Charges | 16476 | ||
| Notes Payable | 305600 | ||
| (Finance Charge =549200*3% |
(b)Prepare the journal entry for Marin collection of $362200 of the accounts receivable during the period from April 1, 2017, through June 30, 2017
| No | Descrption | Debit $ | Credit $ |
| b | Cash | 362200 | |
| Accounts Recivable | 362200 |
(c)On July 1, 2017, Marin paid Third National all that was due from the loan it secured onApril 1, 2017
| No | Descrption | Debit $ | Credit $ |
| c | Notes payable | 305600 | |
| Interest Expanses | 7640 | ||
| Cash | 313240 |
