A company factored $47,000 of its accounts receivable and was charged a 1% factoring fee. The journal entry to record this transaction would include a:

Multiple Choice

• Debit to Cash of $47,000, a debit to Factoring Fee Expense of $470, and credit to Accounts Receivable of $46,530.

• Debit to Cash of $47,000 and a credit to Accounts Receivable of $47,000.

• Debit to Cash of $46,530, a debit to Factoring Fee Expense of $470, and a credit to Accounts Receivable of $47,000.

• Debit to Cash of $47,000 and a credit to Notes Payable of $47,000.

• Debit to Cash of $47,470 and a credit to Accounts Receivable of $47,470.