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  3. 3. assignment of accounts receivable: on august 1,

3. Assignment of Accounts Receivable: On August 1, Fallbrook Company assigned $200,000 of its accounts...

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Accounting

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3. Assignment of Accounts Receivable: On August 1, Fallbrook Company assigned $200,000 of its accounts receivable to Household Bank as collateral for a $170,000 loan by issuing a note. Fallbrook will continue to collect the receivables. Household Bank assesses a finance charge of 2% of the assigned accounts receivable, and charges 12% interest annually on the outstanding loan balance. By August 31 , Fallbrook had collected $150,000, and remitted this amount plus the interest to date on August 31 to Household Bank. Required (10 points): Prepare journal entries to record the above transactions on Fallbrook's General Journal

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