Belanger Ltd. reports a current ratio of 2-to-1 in its 20X2 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: 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.) 3. Recalculate the current ratio reflecting first sale/derecognition and then borrowing. (Round your answers to 2 decimal places.) Sale/derecognition Borrowing Current Ratio