Cullumber Distributors is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets and sales. Cullumber's local banker has indicated that the company cannot increase its borrowing for the foreseeable future. Cullumber's suppliers are demanding payment for goods acquired within 30 days of the invoice date, but Cullumber's customers are slow in paying for their purchases (60-90 days). As a result, Cullumber has a cash flow problem.

Cullumber needs $168,600 to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $771,000

To alleviate this cash crunch, the company sells $182,300 of its receivables.

Record the entry that cullumber would make. (Assume a 2% service charge)

Cullumber Distributors is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets and sales. Cullumber's local banker has indicated that the company cannot increase its borrowing for the foreseeable future. Cullumber's suppliers are demanding payment for goods acquired within 30 days of the invoice date, but Cullumber's customers are slow in paying for their purchases (60-90 days). As a result, Cullumber has a cash flow problem. Cullumber needs $168,600 to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $771,000. To alleviate this cash crunch, the company sells $182,300 of its receivables. Record the entry that Cullumber would make. (Assume a 2% service charge.) (List all debit entries before credit entries. Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)