Adjusting Entries: On April 1, 201X, Jokers Company assigns $600,000 of
its accounts receivable to the First National Bank as collateral for a
$300,000 loan due July 1, 201X. The assignment agreement calls for
Jokers Company to continue to collect the receivables. First National
Bank assesses a finance charge of 2% of the accounts receivable, and
interest on the loan is 10% (a realistic rate of interest for a note of
this type). Prepare the April 1, 201X journal entry for Jokers Company.
You are to prepare the missing adjusting entry. For each journal entry
write Dr. for debit and Cr. for credit.