Lincraft Corp. reports a current ratio of 3 to-1 in its 202 financial statements. The statement of financial position shows current assets of $3,125,500 and current liabilities of $1,049,100. Lincraft has accounts receivable of $1,279.300. The company transfers $982,000 of these accounts receivable to a financial institution. There are $34.200 of bad debts associated with these accounts receivable, an amount that is already in the allowance for doubtful accounts. Proceeds of $892.750 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 $940,000 to Lincraft on schedule, $34,200 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.) Journal entry worksheet 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.) Journal entry worksheet Record the $982,000 transfer of receivables to a financial institution. There are $34,200 of bad debts associated with these accounts receivable and proceeds of $892,750 are received from the transfer. Note: Enter debits before credits. Journal entry worksheet Record the $940,000 cash remittance is forwarded to the financial institution. Note: Enter debits before credits. 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.) Journal entry worksheet 345 Record the $940,000 note payable signed on the $892,750 received from the transfer. Note: Enter debits before credits. 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.) Journal entry worksheet 45 Record the $940,000 cash collected from customers. Note: Enter debits before credits. 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.) Journal entry worksheet Record the $940,000 repayment of note payable. Note: Enter debits before credits. The transfer is recorded as a borrowing. (If no entry is required for a transaction/event, select "No journal entry required" in the irst account field.) Journal entry worksheet