On June 30, 2021, Hannifin needed to increase liquidity (i.e., raise cash). Option One called for transferring $390,000 in accounts receivable to BlueVine Factoring without recourse for a 4% fee. Option Two calls for Hannifin to transfer the $390,000 in receivables to BlueVine Factoring with recourse. BlueVine Factoring charges a 3% fee for receivables factored with recourse. Option Two meets the conditions to be considered a sale, but Hannifin estimates a $2,900 recourse liability. Under either option, BlueVine will immediately remit 85% of the factored receivables to Hannifin, and retain 15%. When BlueVine collects the remaining receivables, it remits the amount, less the fee, to Hannifin. Hannifin estimates that the fair value of the final 15% of the receivables is $24,500 (ignoring the factoring fee). 1. Prepare any necessary journal entry or entries if receivables are factored under Option One. 2. Prepare any necessary journal entry or entries if receivables are factored under Option Two.