Answer
Chung, Inc.
Cash.................................................................................... 730,000
Finance Charge .................................................................. 20,000*
…………………….Notes Payable.......................................................... 750,000
Seneca National Bank
Notes Receivable.............................................................. 750,000
………………………………Cash................................................................ 730,000
………………………………Financing Revenue ........................................20,000*
Work Step by Step
1,000,000 X 2% = 20, 000*