Question: On October 1 2014 Alpha Inc assigns 2 million of

On October 1, 2014, Alpha Inc. assigns $2 million of its accounts receivable to Alberta Provincial Bank as collateral for a $1.6-million loan evidenced by a note. The bank's charges are as follows: a finance charge of 4% of the assigned receivables and an interest charge of 13% on the loan.
Prepare the October 1 journal entries for both Alpha and Alberta Provincial Bank.

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  • CreatedSeptember 18, 2015
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