Waterway Industries is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets andsales. 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 30 days of the invoice date, but WaterwayIndustries's customers are slow in paying for their purchases (60-90 days). As a result, Waterway Industries has a cash flow problem.Waterway Industries needs $147,100 to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $767,100.To alleviate this cash crunch, the company sells $164,200 of its receivables.Record the entry that Waterway Industries would make. (Assume a 2% service charge.) (Credit account titles are automatically indentedwhen amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit

Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Answered: Waterway Industries is a growing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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