Kirk Furniture Factors $800000 of Receivables to Sulu Factors Inc

Kirk Furniture factors $800000 of receivables to Sulu Factors Inc. Sulu Factors assesses a 4% service charge on the amount of receivables sold. Kirk Furniture factors its receivables regularly with Sulu Factors. What journal entry does Kirk make when factoring these receivables? a.
$\begin{array}{lrr} \text { Cash} &768,000\\ \text { Loss on Sale of Receivables} &32,000\\ \text { Accounts Receivable} &&500,000\end{array}$

b.
$\begin{array}{lrr} \text { Cash} &768,000\\ \text {Accounts Receivable } &&768,000\\\end{array}$


c.
$\begin{array}{lrr} \text { Cash } &800,000\\ \text { Accounts Receivable } &&768,000\\ \text { Gain on Sale of Recenables } &&32,000\end{array}$


d.
$\begin{array}{lrr} \text { Cash } &768,000\\ \text { Service Charge Expens} &32,000\\ \text { Accounts Receivable } &&800,000\end{array}$