On December 31, 2015, Waterway Co. performed environmental consulting services for Hayden Co. Hayden was short of cash and Waterway Co. agreed to accept a $ 145,000 zero-interest-bearing note due December 31, 2017. as payment in full. Hayden is somewhat of a credit risk and typically borrows funds at a rate of 10%. Waterway is much more creditworthy and has various lines of credit at 6% (a) a) Prepare the journal entry to record the transaction of December 31, 2015, for Waterway Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 5,275.25. If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically Indented when the amount is entered. Do not indent manually) Debit Credit Date Account Titles and Explanation 145000 Dec. 31. 2015 Notes Receivable Discount on Notes Receivable Sales Revenue Stellar Corp.factors $427.000 of accounts receivable with Pearl Finance Corporation on a without recourse basis on July 1, 2020 The receivables records are transferred to Pearl Finance, which will receive the collections. Pearl Finance assesses a finance charge of 1.90% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. (a) Prepare the journal entry on July 1, 2020, for Stellar Corp. to record the sale of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation July 1, 2020 Cash Due from Factor Loss on Sale of Receivables Accounts Receivable