On April 1, 2014, Rasheed Company assigns $517,200 of its accounts receivable to the Third National Bank as collateral for a $344,000 loan due July 1, 2014. The assignment agreement calls for Rasheed Company to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).
(a) Prepare the April 1, 2014, journal entry for Rasheed Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.