4. On October 1, 2018, Watergate Hotels borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivables a

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4 On October 1 2018 Watergate Hotels Borrowed 400 000 At 12 Interest And Pledged 500 000 In Accounts Receivables A 1 (34.18 KiB) Viewed 78 times

4. On October 1, 2018, Watergate Hotels borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivables as collateral. Additionally, Watergate was charged a finance fee equal to 1% of the accounts receivable assigned. At the end of December, $300,000 of the assigned receivables were collected and remitted to the tender along with accrued interest Required: Prepare journal entries to record the borrowing, the assignment of receivables, the collection on the receivables, and the recognition of interest expense.