intermediate accounting. Revenue Recognition

Belanger Ltd reports a current ratio of 2-to-1 in its 20X2 financial statements. The statement of financial position shows current assets of $2,564,500 and current liabilities of $1,380.000 Accounts receivable are $753.900 of the current assets Belanger is considering transferring $600,000 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 $576,400 are expected from the transaction Required: 1. Not available in connect 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.) xam Served Help Journal entry worheet 2. Record the transfer of the accounts as sale/derecognition. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal - 16 Next Journal entry orksheet