Ball Ltd. has accounts receivable of $365,400.On November 10, 2020, the company transfers $298,000 of the accounts receivable to a financial institution.There are $3,800 of bad debts associated with these accounts receivable, an amount that is already in the allowance for doubtful accounts.Proceeds of $285,600 are received from the transfer.The transfer is on a non-notification basis.The customers pay $294,200 to Ball on schedule, $3,800 is written off to the allowance at the appropriate time, and the cash remittance is forwarded to the financial institution

Required:

Record the journal entries for the transfer and receipt of payment assuming:

1. The transfer is recorded as a sale/derecognition
2. The transfer is recorded as a borrowing