Sparky,Inc.factors $800,000of accounts receivable with Goldwater Finance Corporation.Goldwater will collect the receivables on a notification basis.Goldwater assesses a finance charge equal to3%ofthe accountsreceivable factored and requires their fee be paid at the beginning of the agreement.Goldwater also reserves 4% of the accounts factored to cover probable adjustment for sales discounts, returns and allowances.The factoring was done with recourse, the three conditions were met to qualify as a sale, and the recourse obligation is estimated to be 2% of A/R factored.

How would you state the effect of the factoring transaction on Sparky'sBalance Sheet.Using I for Increase, D for Decrease, and NE for No Effect for Assets Liabilities and Stockholders Equity?