A company sells $200,000 of accounts receivable to a factor for cash less a 2% service charge. The entry to record the sale should include
A. a debit to Cash for $196,000.
B. a credit to Sales Revenue for $196,000.
C. a credit to Accounts Receivable for $196,000.
D. a debit to Interest Expense for $4,000.
E. a credit to Service Charge Expense for $4,000.