Instructions For the items listed below in Chapter $6,$ prepare journal entries for the following transactions of Mars Co$.$: $($a$)$ Accounts receivable in the amount of $$1,500,000$ were assigned to Utley Finance Co$.$ by Mars as security for a loan of $$1,300,000.$ Utley charged a $3\%$ commission on the accounts; the interest rate on the note is $12\%.($b$)$ During the first month, Mars collected $$600,000$ on assigned accounts after deducting $$1,400$ of discounts. Mars wrote off a $$1,600$ assigned account. $($c$)$ Mars paid to Utley the amount collected plus one month's interest on the note. $($d$)$ Explain the differences in accounting for a secured borrowing and a sale of receivables. Hints See textbook EXAMPLE $6\mathrm{.}15$ for full reference details. I only provided you a partial snapshot. $($a$)$ Interest Expense $($$$1,500,000$ x $3\%)=45,000($b$)$ Sales Discounts $=1,400$; Allowance for Doubtful Accounts $=1,600($c$)$ Interest Expense $($$$1,300,000$ x $12\%$ x $1/12)=13,000$ Loan FACTS EBC borrows $\backslash (\backslash$$ $500,000\backslash )$ from Citizens Bank. The general terms of the loan are that EBC will pledge $\backslash (\backslash$$ $700,000\backslash )$ of its accounts receivable to Citizens Bank as collateral for the loan. EBC will continue to collect the accounts receivable. Citizens Bank assesses a finance charge of $\backslash (1\backslash \%\backslash )$ of the accounts receivable and interest on the note at $\backslash (12\backslash \%\backslash ).$ EBC makes monthly payments to the bank for all cash it collects on the receivables. The specific transactions between EBC and Citizens Bank for $2025$ are as follows. $-$ On March $1,$ EBC enters into the loan agreement with Citizens Bank. $-$ During March, EBC decreased Accounts Receivable by $\backslash (\backslash$$ $454,000$ ; $\backslash$$ $14,000\backslash )$ was due to sales returns, and $\backslash (\backslash$$ $440,000\backslash )$ was collected less cash discounts of $\backslash (\backslash$$ $6,000\backslash ).-$ On April $1,$ EBC remitted March collections plus accrued interest to the bank. $-$ During April, EBC collected the balance of accounts receivable less $\backslash (\backslash$$ $2,000\backslash )$ written off as uncollectible. $-$ On May $1,$ EBC remitted the balance due of $\backslash (\backslash$$ $66,000\backslash )$ on the note plus interest on May $1.$ QUESTION What entries should EBC and Citizens Bank make for the above transactions?To record issuance of note and finance fee related to loan using accounts receivable as collateral:To reduce accounts receivable for cash received less sales discounts and sales returns and allowances: