On October 1, 2018, Crane Company sells (factors) $704000 of receivables to Beanfield Factors, Inc. Beanfield assesses a service charge of 3% of the amount of receivables sold. The journal entry to record the sale by Crane will include

A. a debit of $21120 to Service Charge Expense. B. a debit of $725120 to Cash. C. a debit of $704000 to Accounts Receivable. D. a credit of $725120 to Cash.