Lonergan Company occasionally uses its accounts recelvable to obtain immediate cash. At the end of June 2024, the company had accounts recelvable of $800.000. Lonergan needs approximately $510,000 to copitalize on a unique investment opportunity. On July 1, 2024, a local bank offers Lonergan the following two altematives: a. Borrow $510,000, 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 10% interest on the unpaid balance of the note at the beginning of the period. b. Transfer $560,000 of specific recelvables to the bank without recourse. The bank will charge a 3% factoring fee on the amount of recelvables transferred. The bank will collect the receivables 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 90% of all June 30 receivables are collected during July, prepare the necessary joumal entries to record the collection and the remittance to the bank for. a. alternative a b. alternative b