Current Attempt in Progress

On March $1,2017,$ Beijing Pasta Company assigns $$1,400,000$ of its accounts receivable to Bank of China as collateral for a

$$1,000,000$ note. Bank of China assesses a finance charge of $1$ percent of the accounts receivable and interest on the note of $12$

percent. Which of the following is correct regarding this transaction?

On March $1,2017,$ Bank of China will credit Due from Factor for $$20,000.$

On March $1,2017,$ Bank of China will credit Interest Revenue for $$14,000.$

Bank of China has purchased Beijing Pasta's receivables.

On March $1,2017,$ Bank of China will credit Gain on Purchase of Receivables for $$34,000.$