On October 1, 2017, Gomez Inc. assigns $1,900,000 of its accounts receivable to Ottawa National...
90.2K
Verified Solution
Link Copied!
Question
Accounting
On October 1, 2017, Gomez Inc. assigns $1,900,000 of its accounts receivable to Ottawa National Bank as collateral for a $1,108,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 6%. Prepare the October 1 journal entries for both Gomez and Ottawa. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Gomez, Inc. Ottawa National Bank
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
