Frankie Inc. enters into an arrangement with Fisker Enterprises whereby Fisker will assume $90,000 of Ritters receivables for a 5% fee. These receivables have a related allowance for doubtful accounts of $2,500. Assuming the transaction was a factoring arrangement without recourse, which one of the following entries will Ritter make?

a.	DR Cash	$90,000
	CR Accounts receivable		$90,000
b.	DR Cash	$85,500
	DR Loss on sale of receivables	4,500
	CR Accounts receivable		$90,000
c.	DR Cash	$85,500
	DR Allowance for doubtful accounts	2,500
	DR Loss on sale of receivables	2,000
	CR Accounts receivable		$90,000
d.	DR Cash	$87,500
	DR Allowance for doubtful accounts	2,500
	CR Accounts receivable		$90,000