E7-13B (Assigning Accounts Receivable) On April 1 2014 Somers Company assigns $200000 of its accounts receivable to Third National Bank as collateral for a $100000 loan due July 1 2014. The assignment agreement calls for Somers Company to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable and interest on the loan is 8% (a realistic rate of interest for a note of this type).Instructions(a) Prepare the April 1 2014 journal entry for Somers Company.(b) Prepare the journal entry for Somerss collection of $175000 of the accounts receivable during theperiod from April 1 2014 through June 30 2014.(c) On July 1 2014 Somers paid Third National all that was due from the loan it secured on April 1 2014.
