On November 1, ABC factors $300,000 of accounts receivable withD Corporation without recourse. D will collect the receivables on anotification basis. D advances 90% of the Accounts factored to ABCinitially, and assesses a finance charge of 4% of the accountsfactored which will be remitted at the end of the agreement. Dreserves the balance of accounts receivables factored to coverprobable adjustments for sales returns and allowances. ABC does notoffer any sales discounts. On November 1, after the factoringtransaction has been recorded, determine the effect on ABC'sassets:

A. Assets increased by $270,000

B. Assets decreased by $12,000

C. Assets decreased by $30,000

D. Assets decreased by $300,000