On March 1, 2020, Blossom Pasta Company assigns $1401900 of its accounts receivable to Bank of China as collateral for a $1002500 note. Bank of China assesses a finance charge of 1 percent of the accounts receivable and interest on the note of 14 percent. Which of the following is correct regarding this transaction?

Select answer from the options below

On March 1, 2020, Blossom Pasta Company will debit Interest Expense for $14019.

On March 1, 2020, Blossom Pasta Company will debit Loss on Sale of Receivables for $34069.

Blossom Pasta Company has factored its receivables.

On March 1, 2020, Blossom Pasta Company will credit Due from Factor for $20050.