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

Blossom needs $$161,000$ to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $$783,100.$ To alleviate this cash crunch, the company sells $$169,400$ of its receivables.

Record the entry that Blossom would make. $($Assume a $2\%$ service charge.$)($List all debit entries before credit entries. 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

Cash

Service Charge Expense

Accounts Receivable $$

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List of Accounts

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