-onergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2024, the company had accounts receivable of $1,180,000. Lonergan needs approximately $700,000 to capitalize on a unique investment opportunity. On July 1, 2024, a local bank offers Lonergan the following two alternatives: a. Borrow $700,000, 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 receivables collected plus 9% interest on the unpaid balance of the note at the beginning of the period. b. Transfer $750,000 of specific receivables to the bank without recourse. The bank will charge a 4% 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 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. altemative 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 it no entry is required for a transactionvevent, select "No journal entry required" in the first account feld. 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 Record the borrowing $700,000, sign a note payable, and assign the entire receivable balance as collateral. Note: Enter debits before credits. Prepare the journal entry that would be recorded on July 1 for alternative b. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fi Journal entry worksheet Record the transfer $750,000 of specific receivables to the bank without recourse. The bank will charge a 4% factoring fee on the amount of receivables transferred. Note: Enter debits before credits. Assuming that 80% of all June 30 receivables are collected during July, prepare the neces the remittance to the bank for alternative a. Note: If no entry is required for a transaction/event, select "No journal entry required" in Journal entry worksheet Record the collection of receivables, assuming that 80% of all June 30 receivables are collected on July 31 . Note: Enter debits before credits. Assuming that 80% of all June 30 recelvables are collected during July, prepare the necessary journal entries to record the collection an the remittance to the bank 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 Record the month-end remittance to the bank as the amount of receivables collected plus 9% interest on the unpaid balance of the note at the beginning of the period. Note Enter debits before credits. Assuming that 80% of all June 30 recelvables are collected during July, prepare the necessary journal entry to record the collection and the remittance to the bank for alternative b. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the collection of receivables, assuming that 80% of all June 30 receivables are collected on July 31 . The bank will collect the transferred receivables directly. Note: Enter debits before credits