Limerick's Landing is a retail store that has decided to sell its accounts receivable in order to generate needed cash flow. Specifically, they have decided to sell $375,000 of accounts receivable to O'Hare Bank on July 1, 20Y1 on a with recourse basis. O'Hare Bank assesses a finance fee of 5% of the total amount of accounts receivable. They will also retain 7% related to sales returns. Limerick's Landing agreed to cover $22,000 of bad debts until September 1, 20Y1. By the end of the recourse period, Limerick's Landing had ultimately paid the factor $18,000 to cover bad debts incurred.

Show how this transaction impacted Limerick's Landing Statement of Cash Flows, Income Statement and Balance Sheet during the 3rd quarter of 20Y1. Indicate current period changes to the Balance Sheet, which will not necessarily reflect the September 30 ending balance. List account names or descriptions in the first column and amounts in the second column. Please include the appropriate dollar sign and commas (example $25,000). Please place negative numbers in parenthesis ($25,000).

Impact on Cash Flows for the 3rd Quarter of 20Y1
Net Impact on Q3 20Y1 Cash Flow

Impact on Earnings for the 3rd Quarter of 20Y1
Net Impact on Q3 20Y1 Earnings

Cumulative Impact on Balance Sheet Elements for the 3rd Quarter of 20Y1
ASSETS:
Cumulative Change in Q3 20Y1 Assets
LIABILITIES + EQUITY:
Cumulative Change in Q3 20Y1 Liabilities + Equity