DO IT! 8.2b AP Distributors is a company whose ability to raise capital has not been growing quick enough. AP needs $160,000 to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $800,000. To alleviate this cash crunch, AP sells $170,000 of its receivables. Record the entry that AP would make. (Assume a 2% service charge.) (b) FYI: In this case, entry needs to increase the bal in the "Allow" acct from $5,700 up to $21,700 (7% x $310,000).