On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $750,000. On…

On June 30, 2018, the High Five Surfboard Company had
outstanding accounts receivable of $750,000. On July 1, 2018, the
company borrowed $600,000 from the Equitable Finance Corporation
and signed a promissory note. Interest at 10% is payable monthly.
The company assigned specific receivables totaling $750,000 as
collateral for the loan. Equitable Finance charges a finance fee
equal to 1.8% of the accounts receivable assigned. Required:
Prepare the journal entry to record the borrowing on the books of
High Five Surfboard. (If no entry is required for a
transaction/event, select “No journal entry required” in the first
account field.)