Lonergan Company occasionally uses Its accounts receivable to obtain Immedlate cash. At the end of June 2021, the company had accounts recelvable of $1,140.000. Lonergan needs approximately $680,000 to capitalize on a unique Investment opportunity. On July 1, 2021, a local bank offers Lonergan the following two alternatives: a. Borrow $680,000, sign a note payable, and assign the entire recevable 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 12% Interest on the unpald balance of the note at the beginning of the period. b. Transfer $730,000 of specific receivables to the bank wthout recourse. The bank will charge a 3% factoring fee on the amount of recelvables transferred. The bank will collect the recelvables directly from customers. The sale criteria are met. Required: 1. Prepare the journal entries that would be recorded on July 1for: a. alternative a. b. alternative b. 2. Assuming that 80 % of all June 30 recelvables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for: a. alternative a b. alternative b