On march 1, 2017, beijing pasta company assigns $1,400,000 of its accounts receivable to bank of china as collateral for a $1,000,000 note. bank of china assesses a finance charge of 1 percent of the accounts receivable and interest on the note of 12 percent. which of the following is correct regarding this transaction

The answer is On March 1, 2017, Beijing Pasta Company will debit Interest Expense for $14,000.

Explanation:

Interest expense is the is the cost of funds loaned to a business by a bank or lender. Here a loan is taken from Bank of China by the Beijing Pasta Company.

Bank of China assesses a finance charge of 1 percent of the accounts receivable we can calculate that this ammount is $14,000 on March 1, 2017.

parable of the tares

explanation:

for many centuries there were important factors which the economies of the muslim empires developed increasingly. they applied economic procedures in production, investment, finance, taxation and property. they used to tax certain goods (for example: harvest), they charged interest on money lent, they signed contracts with merchants; they relied on a common currency, and they used checks as well as promissory notes. with the money collected by means of taxation, the government provided the needy with an income. in addition, trading networks covered huge distances, so far regions started to have contact and exchange goods. this trade network covered areas of asia, africa and europe.