A Crest Textiles factors $40,000 of accounts receivable on a with recourse basis. The Factor agrees to provide financing based on these receivables, but imposes a 10% one-time fee. In addition, the transferor and transferee agree that $3,000 of sales returns and allowances (adjustments) can be expected from these accounts. Further, Crest Textiles determines that this recourse obligation has a fair value of $5,000. What is the loss or expense to be recorded by the transferor? Select one: a. $7,000 b. $4,000 c. $9,000 d. $3,000