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Waterway Industries is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets and sales. Waterway Industries's
Waterway Industries is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets and sales. Waterway Industries's local banker has indicated that the company cannot increase its borrowing for the foreseeable future. Waterway Industries's suppliers are demanding payment for goods acquired within days of the invoice date, but Waterway Industries's customers are slow in paying for their purchases days As a result, Waterway Industries has a cash flow problem.
Waterway Industries needs $ to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $ To alleviate this cash crunch, the company sells $ of its receivables.
Record the entry that Waterway Industries would make. Assume a service charge.Credit account titles are automatically indented when amount is entered. Do not indent manually.
Account Titles and Explanation
Debit
Credit
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