please explain why so i fully understand, thank you.

On October 1, 2020, Oriole Company sells (factors) $703000 of receivables to Milago Factors, Inc. Milago assesses a service charge of 3% of the amount of receivables sold. The journal entry to record the sale by Oriole will include a debit of $724090 to Cash O a debit of $703000 to Accounts Receivable. O a debit of $21090 to Service Charge Expense. O a credit of $724090 to Cash