Southwest Co. borrows $100,000 on January 1 from Northeast Bank at a 12% interest rate. Southwest assigned $140,000 of its accounts receivable as collateral, and agreed to pay a financing fee of 2% of accounts receivable assigned. On January 1, Southwest's accounting for this transaction will include?

Answer rating: 100% (QA)

Heres the journal entry for Southwest Cos accounting on January 1st for the loan from Northeast Ban... View the full answer