On July 1 of the current year, Online Tacos factored receivables with a carrying value of $560,000 to a local bank. The transfer was made without recourse. The bank remits 85% of the factored amount to Online Tacos and retains the remaining 15%. When collections are over, the bank will remit to Online Tacos what it collects of the retained amount (expected to be $70,000) less a fee equal to 8% of the total amount factored. On July 1, Online Taco would:
A. Debit loss on sale of receivables for $58,800.
B. Credit cash for $476,000.
C. Debit accounts receivable for $560,000.
D. Debit receivable from factor for $70,000.
