Belanger Ltd$.$ reports a current ratio of $2-$to$-1$ in its $20$X$2$ financial statements. The statement of financial position shows current assets of $$2,566,000$ and current liabilities of $$1,386,000.$ Accounts receivable are $$754,400$ of the current assets. Belanger is considering transferring $$610,000$ of the accounts receivable with a $90-$day term to a financial institution. There are no bad debts associated with these accounts receivable. Proceeds of $$586,100$ are expected from the transaction.

Required:

$1.$ This part of the question is not part of your Connect assignment.

$2.$ Prepare the journal entry to record the transfer as a sale$/$derecognition and a borrowing. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$