Question

Winkler company borrows $96,000 and pledges its receivables as security. the journal entry to record this transaction would be:

Answer 1

The journal entry to record the transaction where Winkler company borrows $96,000 and pledges its receivables as security would be a debit to cash and receivables, and a credit to notes payable.

Step-by-step explanation:

The journal entry to record the transaction where Winkler company borrows $96,000 and pledges its receivables as security would be as follows:

1. Debit: Cash $96,000
2. Credit: Notes Payable $96,000
3. Debit: Receivables $96,000
4. Credit: Notes Payable $96,000

In this entry, the company debits cash and receivables to reflect the money it has borrowed and the security it has pledged. The company also credits notes payable to show the increase in its liabilities. This entry accurately reflects the transaction and its impact on Winkler company's financial statements.

Answer 2

$100,000 dollars $$$$$