Can someone provide a discussion response for the information below? Thanks in advance! Please give a logical response.

1. Discussion Question: Accounts Receivable Management" Please respond to the following: DO IT! 8-2b Neumann Distributors is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets and sales. Neumann's local banker has indicated that the company cannot increase its borrowing for the foreseeable future. Neumann's suppliers are demanding payment for goods acquired within 30 days of the invoice date, but Neumann's customers are slow in paying for their purchases (60- 90 days). As a result, Neumann has a cash flow problem. Neumann needs $160,000 to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $800,000. To alleviate this cash crunch, the company sells $170,000 of its receivables. Record the entry that Neumann would make. (Assume a 2% service charge.) 2. Discussion Response: Debit Cash $170,000-$3,400= $166,600 Service Charge Expense $170,000*2%= $3,400 Accounts Receivable Credit $170,000 I reviewed the example in our textbook (under Sale of Receivable to a Factor) to help me solve this problem. Step 1: Figure out the service charge expense by multiplying the company sells $170,000 of its receivable by 2% to get $3,400. Step 2: Then subtract the service charge expense of $3,400 from the sale of the company's receivable of $170,000. Step 3: Last you add the debit amounts ($166,600 plus $3,400) together to get the credit amount for the Accounts Receivable of $170,000. Finally, the cash flow needed to cover Friday's payroll is $166,600