Lonergan Company occauonaly uses its accounts recevabie to obtain immediate cash At the end of Juhe 2024, the compary had accounts recelvable of $1,100,000. Lonergan needs approvimately $660,000 to capialize on a tunique investment opportunity On July 1.2024, a local bank offers tonergan the following two alternatives a. Borrow $660,000, agn a promissory note, and assign the entire recewable balance as collateral At the end of each month, a remirtance will be made to the bank that equals the amount of recetvables collected plus 14% interest on the unpald balance of the note at the begmning of the period b. Transfer $770,000 of spectic recetvables to the bank without recourse. The bank will charge a 2% factoring tee on the amount of recetvabies transterred. The bank will collect the recelvables darectly from customers. The sale critaria are met. Required: 1. Prepsie the journal entnes that would be recorded on July 1 for: a. ahemative a. b. alternative b. 2. Assuming thar sos of at june 30 recelvables are collected dunng July, prepare the necessary joumal enties to record the coliecoon and the remimance to the bank for: a. alternative a. b. alsemetive b: Complete this question by entering your answers in the tabs below. Prepare the journal ectry thet wolid be recorded on huly i for aiternative a. Journal entry worksheet recervable balance as collateral. Canplete thes evention by enterine vour answers in the tabs belew. Mecare the joumal entry that mond be recurded on July 1 for alimative b. Journal entry worksheet Sheond the transter $710,000 of specie recrivatles to the bank without recourse. The bank will chatge a 2% factorng fee en the amount of recervables transferred. Journal entry worksheet 2 the romitlance to the bank for storivative as Journal entry worksheet collected plut 14% interest on the unpas balance of the nobe at the begining of the period. Aasuming that soss of all lune 30 recervables arn cod Aasuming that sos of all lune 30 recrivabici the renatiance to the bank. for altematre b. Aly, primare the necessary journal entry to rected the relledion and Journal entry worksheet Record the collection of recoivables, ssiumng that aons of all Xne 30 receivables are collected on July 31 . The bank enll cellect the transferred recervables direthy