HONE ENO a NUM LOCK 2 . 7 8 HOME W Boggus Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had accounts receivable of $960,000. Boggus needs approximately 5590,00 to capitalize on a great investment opportunity. On July 1, 2021, a local bank offers Boggus the following alternatives: Borrow $590,000, sign a note payable, and assign the entire receivable 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. Transfer S640,000 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 collect the receivables directly from the customers. The sale criteria are met. Required: 1. Prepare the journal entries that would be recorded on July 1 for: a. Alternative a. b. Alternative b. 2. Assuming that 80% of all June 30 receivables are collected during July, prepare journal entries to record the collection and the remittance to the bank for: a. Alternative a b. Alternative b. 5 2 END N 0 INS