Jervis sells $4,400 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 4% factoring fee. What entry should Jervis make on to record the transaction?
a Debit Accounts Receivable $4,400; credit Cash $4,400.
b Debit Cash $4,400; credit Accounts Receivable $4,400.
c Debit Cash $4,576; credit Factoring Fee Expense $176; credit Accounts Receivable $4,400.
d Debit Cash $4,224; debit Factoring Fee Expense $176; credit Accounts Receivable $4,400.
e Credit Cash $4,224; credit Factoring Fee Expense $176; debit Accounts Receivable $4,400.