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.) 2 Record the transfer of the accounts as sale/derecognition. Notes Enter debits before credits. Transaction General Journal Debit Credit 1 Record the transfer of the accounts as borrowing. Note: Enter debits before credits. Debit General Journal Transaction Cre 2 View