Lincraft Corp. reports a current ratio of $3-$to$-1$ in its $20$X$2$ financial statements. The statement of financial position shows current assets of $$3,124,000$ and current liabilities of $$1,047,600.$ Lincraft has accounts receivable of $$1,277,300.$ The company transfers $$980,000$ of these accounts receivable to a financial institution. There are $$34,100$ of bad debts associated with these accounts receivable, an amount that is already in the allowance for doubtful accounts. Proceeds of $$892,200$ are received from the transfer. The transfer is on a non$-$notification basis, which means that the customers pay Lincraft and Lincraft then remit the cash to the financial institution. The customers pay $$939,400$ to Lincraft on schedule, $$34,100$ is written off to the allowance at the appropriate time, and the cash remittance is forwarded to the financial institution.

Required:

$1.$ Record all journal entries for the sequence of events assuming:

a$.$ The transfer is recorded as a sale$/$derecognition$.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

b$.$ The transfer is recorded as a borrowing. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$