3 Book Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had accounts receivable of $1,120,000. Lonergan needs approximately $660,000 to capitalize on a unique investment opportunity. On July 1,2021, a local bank offers Lonergan the following two alternatives: a. Borrow $660,000, sign a note payable, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 10% Interest on the unpaid balance of the b. Transfer $720,000 of specific receivables to the bank without recourse. The bank will charge a 2% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met. Required: 1. Prepare the journal entries that would be recorded on July 1 for a. alternative a b. altemative b. 2. Assuming that 70% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for: a. alternative a b. alternative b. Print Complete this question by entering your answers in the tabs below. Req 1A Reg 16 Reg 2 Reg 20 Prepare the journal entries that would be recorded on July 1 for alternative a. (If no entry is required for a transaction/event, select "No journal entry required in the first account field) gucation.com Chapter 07 Savod 8 a alternative a b. alternative b. Complete this question by entering your answers in the tabs below. 3 points Block Reg 1A Reg 1B Req 2A Reg 28 Prepare the journal entries that would be recorded on July 1 for alternative a. (If no entry is required for a transaction/event, Journal entry required" in the first account field.) View transaction lit Print Journal entry worksheet 1 > Record the borrowing 5660,000, sign a note payable, and assign the entire receivable balance as collateral Note: Enter det before credits Date July 01, 2021 General Journal Debit Credit Record entry Clear entry View general Journal Neg 10 00 d. Grenduve a b. alternative b Complete this question by entering your answers in the tabs below. 3 points Reli 1B Req 1A Reg 2A Reg 28 Prepare the journal entries that would be recorded on July 1 for alternative b. (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) eBook View transaction list Print Journal entry worksheet Record the transfer $720,000 of specific receivables to the bank without recourse. The bank will charge a 2% factoring fee on the amount of receivables transferred Note Enter debits before credits General Journal Det Creu Date July 01, 2021 Record entry Clear entry View generalfournal 00 a. alternauve a b. alternative b. Complete this question by entering your answers in the tabs below. 3 points Reg 1A Reg 1B Rej 2A Req 28 Assuming that 70% of all June 30 receivables are collected during July, prepare the necessary Journal entries to record the collec the remittance to the bank for alternative a. (If no entry is required for a transaction/event, select "No journal entry required in account field.) eBook Print View transaction list Journal entry worksheet 1 2 Record the collection of receivables, assuming that 70% of all June 30 receivables are collected on July 31. Note Enter debit before credits General Journal Dobit Date July 31, 2021 Credit Record entry Clear entry View general Journal Reg 18 Rega > 8. Complete this question by entering your answers in the tabs below. 3 points Req1A Reg 1B Req ZA Reg 28 Assuming that 70% of all June 30 receivables are collected during July, prepare the necessary Journal entries to record the collectie the remittance to the bank for alternative b. (If no Entry is required for a transaction/event, select "No journal entry required" intr- account field.) oBook View transaction list Print Journal entry worksheet Record the collection of receivables, assuming that 70% of all June 30 receivables are collected on July 31. The bank will collect the transferred receivables directly Note: Enter debits before credits General Journal Debit Credit Date July 31, 2021 Record entry Clear entry View general Journal