Please show calculation and explanation. Thanks

Lincraft Corp. reports a current ratio of 3-to-1 in its 20X2 financial statements. The statement of financial position shows current assets of $3,116,500 and current liabilities of $1,040,100. Lincraft has accounts receivable of $1,267,300. The company transfers $970,000 of these accounts receivable to a financial institution. There are $33,600 of bad debts associated with these accounts receivable, an amount that is already in the allowance for doubtful accounts. Proceeds of $889,450 are received from the transfer. The transfer is on a nonnotification basis, which means that the customers pay Lincraft and Lincraft then remit the cash to the financial institution. The customers pay $936,400 to Lincraft on schedule, $33,600 is written off to the allowance at the appropriate time, and the cash remittance is forwarded to the financial institution. Required: 1. Record all journal entries for the sequence of events assuming: a. The transfer is recorded as a sale/derecognition; and b. The transfer is recorded as a borrowing