On October 1, 2017, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 9%.
Prepare the October 1 journal entries for both Chung and Seneca. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. C
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