6 . ) Mazda Company sold P5 800 ,000 in accounts receivable for cash of P5 000 000 . Thefactor withheld 10% of the cash proceedto allow for possible customer returns and other adjustments . An allowance for bad debts of P600 000 had previously beeestablished by the entity in relation to these accounts . What is the loss on factoring that should be recognized ?a . 200.000b . 700.000C . 500.000d. 800.000