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

Oriole needs $$166,700$ to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $$784,500.$ To alleviate this cash crunch, the company sells $$170,600$ of its receivables.

Record the entry that Oriole would make. $($Assume a $2\%$ service charge.$)($Credit account titles 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.$)$

Account Titles and Explanation

Debit

Credit

$($To record sale of receivables to factor$)$