On April $1$ of the current year, Rolling Rock Company factored

receivables with a carrying value of $$85,000$ for $$60,000$ in cash. The

sale was made without recourse. At the time of sale Rolling Rock would:

Credit deferred interest expense for $$25,000.$

Debit factored accounts receivable for $$85,000.$

Debit discount on liability for $$25,000.$

Debit loss on sale of receivables for $$25,000.$