Lonergan Company occasionally uses its accounts recelvable to obtain immediate cash. At the end of June 2024, the company had accounts recelvable of $1,060,000. Lonergan needs approximately $640,000 to capitalize on a unique investment opportunity. On July 1, 2024. a local bank offers Lonergan the following two alternatives: a. Borrow $640,000, 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 recelvables collected plus 9% interest on the unpaid balance of the note at the beginning of the period. b. Transfer $690,000 of specific receivables to the bank without recourse. The bank will charge a 2% 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 1 for: a. alternative a. b. alternative b. 2. Assuming that 80% of all June 30 receivables are collected during July. prepare the necessary journal entries to record the collection and the remittance to the bank for: a. alternative . b. alternative b. Complete this question by entering your answers in the tabs below. Prepare the journal entry that would be recorded on July 1 for alternative a. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet