Waterway Furniture factors $$902000$ of receivables to Carla Vista, Inc. Carla Vista assesses a $3\%$ service charge on the amount of

receivables sold. Waterway Furniture factors its receivables regularly with Carla Vista. What journal entry does Waterway make when

factoring these receivables?

Cash $902000$

Accounts Receivable $,874940$

Gain on Sale of Receivables $27060$

Cash $874940$

Accounts Receivable $874940$

Cash $874940$

Loss on Sale of Receivables $27060$

Accounts Receivable

$902000$