14. Travis Travel Agency factors $400,000 of receivables to First Factors, Incorporated. First assesses a 3% service charge on the amount of receivables sold by Travis Travel Agency. What journal entry does Travis Travel Agency prepare to report the factoring of its receivables? a. Cash Loss on Sale of Receivables 388,000 12,000 Accounts Receivable 400,000 b. Cash. 388,000 Accounts Receivable 388,000 c. Cash 400,000 Accounts Receivable 388,000 Gain on Sale of Receivables 12,000 d. Cash 388,000 Service Charge Expense 12,000 Accounts Receivable 400,000