On May 1, Waterway, Inc. factored $1,632,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Waterway was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts. Prepare the journal entry required on Waterway's books on May 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation May 1. Debit Credit