Question 4 Wilson Corporation reports a current ratio of 2-to-1 in its 2019 financial statements. The statement of financial position shows current assets of $1,021,600 and current liabilities of $535,200. Accounts receivable are $300,160 of the current assets. Wilson Corporation is considering transferring $140,000 of the accounts receivable with a 90-day term to a financial institution. There are no bad debts associated with these accounts receivable. Proceeds of $123,400 are expected from the transaction. Required: 1) Prepare the journal entry to record the transfer as a sale/derecognition. 2) Prepare the journal entry to record the transfer as a borrowing. General Journal Ref Account Titles and Explanation Debit Credit