Problem 7-7 (Algo) Factoring versus assigning of accounts receivable [LO7-8] Lonergon Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company hed accounts receivable of $980,000. Lonergan needs approximately $600,000 to capitalize on a unique investment opportunity. On July 1.2021, a local bank offers Lonergon the following two siternatives: 2. Borrow $600.000. sign a note payable, and assign the entire receivable balance as collateral. At the end of esch month.. remittance will be made to the bank that equals the amount of receivebles collected plus 8% interest on the unpaid balance of the note at the beginning of the period. b. Transfer $650,000 of specific receivebles to the bank without recourse. The bank will charge a 2% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criterio are met. Required: 1. Prepare the journal entries that would be recorded on July 1 for: a. alternatives b.alternative b. 2. Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for: a. alternative a. b. alternative b. Complete this question by entering your answers in the tabs below. Req 11 Reg 12 Reg 2A Reg 28 Prepare the journal entries that would be recorded on July 1 for alternative a. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Reg 14 Rey 10 Reg 2A Reg 2B Prepare the journal entries that would be recorded on July 1 for alternative b. (Ir no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction Mat Journal entry worksheet Complete this question by entering your answers in the tabs below. Reg 14 Reg 18 Req 2A Req 2B Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for alternative a. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction at 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. Date General Journal Debit Credit July 31, 2021 Record entry Clear entry View general Journal Req 1A Reg 1B Reg 2A Reg 2B Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for alternative a. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the month-end remittance to the bank as the amount of receivables collected plus 8% interest on the unpaid balance of the note at the beginning of the period. Note: Enter debits before credits. General Journal Debit Credit Date July 31, 2021 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Reg 14 Rey 10 Reg 2A Reg 28 Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for alternative b. (Ir no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction et Journal entry worksheet 1 Record the collection of receivables, assuming that 80% of all receivables are collected on July 31. The bank will collect the transferred receivables directly Note: Enter debits before credits Date General Journal Debit Credit July 31, 2021 Record entry Clear entry View general Journal