Belanger Ltd. reports a current ratio of 2-to-1 in its 20X2 financial statements. The statement of financial position shows current assets of $2,549,500 and current liabilities of $1,320,000. Accounts receivable are $748,900 of the current assets. Belanger is considering transferring $500,000 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 $479,400 are expected from the transaction.

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.) View transaction list Journal entry worksheet Record the transfer of the accounts as sale/derecognition. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal 3. Recalculate the current ratio reflecting first sale/derecognition and then borrowing. (Round your answers to 2 decimal places.) Current Ratio Sale/derecognition Borrowing 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.) View transaction list Journal entry worksheet 2 > Record the transfer of the accounts as borrowing. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal 3. Recalculate the current ratio reflecting first sale/derecognition and then borrowing. (Round your answers to 2 decimal places.) Current Ratio Sale/derecognition Borrowing