4 accounts receivable valued at 40000 are sold for 38000

Question

4) Accounts receivable valued at $40,000 are sold for $38,000. How is the difference of $2,000 treated in the entry to record the sale?

 A. As a debit to Interest Expense

 B. As a debit to Factoring Fee Expense

 C. As a credit to Interest Earned

 D. As a credit to Bad Debts ExpenseE. As a debit to Allowance for Doubtful Accounts