Final answer:
The collection of receivables with the bank directly collecting funds would be recorded by debiting Cash/Bank and crediting Accounts Receivable for the amount collected, which is 70% of the total receivables on July 31.
Step-by-step explanation:
When recording the collection of receivables where 70% of all June 30 receivables are collected on July 31 with the bank directly collecting the transferred receivables, the entry on July 31 should reflect the receipt of cash and the reduction in accounts receivable. The journal entry would debit Cash/Bank and credit Accounts Receivable. If $100,000 were the total receivables as of June 30, then the entry on July 31 would show a debit to Cash/Bank for $70,000 and a credit to Accounts Receivable for the same amount.
This entry assumes that the transfer of receivables to the bank does not involve any factor, which means the bank is simply collecting the payment on the company's behalf without taking ownership of the receivables. Should any fees be incurred from this collection process, those would also need to be accounted for in the journal entries, typically as an expense.