Chapter 07 Homework Question 13 (of 15) v 13. 10.00 points Lonergan company occasionally uses its accounts receivable to obtain immediate cash. he end of June 2016, the company had accounts receivable of $960,000, Lonergan needs approximately S590,000 to capitalize on a unique investment opportunity. On July 1.2016, a local bank offers Lonergan the folowing a Borrow sign a note payable, and assign the entire balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 12% interest on the unpaid balance of the note at the beginning of the period. b. Transfor $640,000 of specific receivables to the bank without recourse. The bank will charge a 4% factoring fee on the amount of receivables transferred, The bank will colect the receivables directly from customers. The sale criteria are met Required 1.&2. Prepare the joumal entries that would be recorded for each of the atematives. (If no entry is required for a tran select "No journal entry required" in the first account field.) view transaction list General Journal Debit Credit July 01, 2016