A Company Factored $45,000 of Its Accounts Receivable and Was

Multiple Choice

A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a:

A) Debit to Cash of $45,000, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $46,800.
B) Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.
C) Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000.
D) Debit to Cash of $45,000 and a credit to Notes Payable of $45,000.
E) Debit to Cash of $46,800 and a credit to Accounts Receivable of $46,800.