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accounts recelvable of $860,000. Lonergan needs approximately $540,000 to capitalize on a unique investment opportunity. On July 1, 2024, a local bank offers Lonergan the

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accounts recelvable of $860,000. Lonergan needs approximately $540,000 to capitalize on a unique investment opportunity. On July 1, 2024, a local bank offers Lonergan the following two alternatlves: a. Borrow $540,000, sign a promissory note, and assign the entire recelvable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of recelvables collected plus 12% interest on the unpaid balance of the note at the beginning of the period. b. Transfer $590,000 of specific recelvables to the bank without recourse. The bank will charge a 2% factoring fee on the amount of recelvables transferred. The bank will collect the recelvables directly from customers. The sale criterla are met. Required: 1. Prepare the Journal entrles that would be recorded on July 1 for: a. alternative a. b. alternative b. 2 Assuming that 80% of all June 30 recelvables are collected during July, prepare the necessary joumal entrles to record the collection and the remittance to the bank for: a. alternative a. b. alternative b. Complete this question by entering your answers in the tabs below. Prepare the journal entry that would be recorded on July 1 for altemative a. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the borrowing $540,000, sign a note payable, and assign the entire receivable balance as collateral. Note: Enter debits before crecits. Journal entry worksheet Record the transfer $590,000 of specific receivables to the bank without recourse. The bank will charge a 2% factoring fee on the amount of receivables transferred. Note: Enter dehits befare credits. Journal entry worksheet Record the collection of receivables, assuming that 80% of all June 30 receivables are collected on July 31 . Note: Enter dehits before credis. Journal entry worksheet Record the collection of receivables, assuming that 80% of all June 30 receivables are collected on July 31 . The bank will collect the transferred receivables directly. Note: Enter debits before credits

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