Q Co. sells $20,000 of accounts receivable to a factor without recourse. The factor charges a 15% fee. Which of the following journal entries would be made to record the sale of these receivables?

A. Cash 17,000

Factored Accounts Receivable 20,000

Accounts Receivable 20,000

Notes Payable 17,000

B. Cash 17,000

Loss on Sale of Receivables 3,000

Accounts Receivable 20,000

C. Cash 17,000

Loss on Sale of Receivables 3,000

Sales 20,000

D. Cash 20,000

Interest Expense 3,000

Accounts Receivable 20,000

Due to Factor 3,000