Company D decides to factor $600,000 of its accounts receivables with recourse. The factoring company charges 4% to cover its expenses and risks. The factoring company also retains 9% of the accounts receivable for possible returns. Company D estimates the fair value of the recourse liability to be $25,000. How much cash does Company D receive as a result of selling its accounts receivable?

• A. $540,000
• B. $600,000
• C. $575,000
• D. $522,000