Question: On March 1 , 2 0 2 0 , Carla Vista Pasta Company assigns $ 1 4 0 2 4 0 0 of its accounts

On March 1,2020, Carla Vista Pasta Company assigns $1402400 of its accounts receivable toBank of China as collateral for a $1002200 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?

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