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Complete this question by entering your answers in the tabs below. 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 field. Lonergan Company occasionally uses its accounts recelvable to obtain immedlate cash. At the end of June 2024, the company had accounts recelvable of $860,000. Lonergan needs approximately $540,000 to capitalize on a unique investment opportunity, On July 1, 2024, a local bank offers Lonergan the following two alternatives: a. Borrow $540,000, sign a promissory note, and assign the entire recelvable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of recelvables collected plus 12% interest on the unpaid balance of the note at the beginning of the period. b. Transfer $590,000 of specific recelvables to the bank without recourse. The bank wil charge a 2% factoring fee on the amount of recelvables transferred. The bank wil 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: o. alternative a. b. alternative b. Complete this question by entering your answers in the tabs below. Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary joumal 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 requiced" in the first account field. 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 altemative a. Note: If no entry is required for a transaction/event, select 'No journal entry required in the first account field

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