On October 1, 2020, Pronghorn, Inc. assigns $1,205,800 of its accounts receivable to Stellar National Bank as collateral for a $722,900 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Chung and Seneca.

The journal entries are as follows:

In accounts of Pronghorn, Inc.,

October 1,

Cash A/c Dr. $686,726

Interest expense A/c Dr. $36,174

      To Notes payable                        $722,900

(To record the notes payable)

In accounts of Stellar National Bank,

October 1,

Notes Receivable A/c Dr. $722,900

      To cash A/c                                     $686,726

      To interest revenue                        $36,174

(To record the notes receivable)

Workings:

Interest expense:

= Accounts receivables × Finance change percent

= $1,205,800 × 0.03

= $36,174

Note: Interest can also entered as the finance charges.

answer; i believe the correct answer is (a) motion for change of venue;

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.