Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June $2024,$ the company had accounts receivable of $$750,000.$ Lonergan needs approximately $$500,000$ to capitalize on a unique investment opportunity. On July $1,2024,$ a local bank offers Lonergan the following two alternatives:a$.$ Borrow $$500,000,$ sign a promissory note, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus $11\%$ interest on the unpaid balance of the note at the beginning of the period. The bank assesses a $1\mathrm{.}25\%$ fee upon loan initiation $($fee based on assigned receivables amount$)$b$.$ Transfer $$650,000$ of specific receivables to the bank without recourse. The bank will charge a $2\%$ factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met. The bank will hold back $10\%$ of the receivables for the fee and possible adjustments for returns.Required:$1.$ Prepare the journal entries that would be recorded on July $1$ by Lonergan for:a$.$ alternative a$.$b$.$ alternative b$\mathrm{.}2.$ Assuming that $90\%$ of all June $30$ receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank by Lonergan for:a$.$ alternative a$.$b$.$ alternative b$.$Journal entry for $1$a$.$