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Hum Corp. has accounts receivable of $460,000. The company transfers these accounts receivable to a financial institution. There are no bad debts associated with these

Hum Corp. has accounts receivable of $460,000. The company transfers these accounts receivable to a financial institution. There are no bad debts associated with these accounts receivable. Proceeds of $444,500 are received from the transfer. The transfer is on a non-notification basis, which means that the customers pay Hum, and Hum remits the cash to the financial institution. The customers pay $460,000 to Hum on schedule, and the cash remittance is forwarded to the financial institution.

Required:

Record all journal entries for the sequence of events assuming the transfer is recorded as a sale/derecognition of receivables.

Record all journal entries for the sequence of events assuming the transfer is recorded as a borrowing.

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