Question

Question 3 View Policies Current Attempt In Progress Whispering Winds Corp. is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets and sales. Whispering Winds Corp's local banker has indicated that the company cannot increase its borrowing for the foreseeable future. Whispering Winds Corp's suppliers are demanding payment for goods acquired within 30 days of the invoice date, but Whispering Winds Cora's customers are slow in paying for their purchases (60-90 days. As a result, Whispering Winds Corp. has a cash flow problem Whispering Winds Corp. needs $156,000 to cover next Friday's payroll. Its balance of outstanding accounts receivable total 5724.700. To alleviate this cash crunch, the company sells $177.600 of its receivables Record the entry that Whispering Winds Corp. would make. (Assume a 2% service charge.) Credit accounties are automatically indented when amount is entered Dometindent more Account Tities and Explanation Debit Credit e Textbook and Media List of Accounts Attempts of used

Answer 1

	Debit	Credit
Cash	174048
Service charge expense	3552		=177600*2%
Accounts Receivable		177600
Note: Alternative account title for Service charge expense is Loss on sale of Receivables