Bristol Machinery Has a Conventional Receivables Factoring Arrangement with a Factor

Bristol Machinery has a conventional receivables factoring arrangement with a factor. This indicates that:

A) Bristol is responsible for any bad debts.
B) The money payable under the arrangement will be paid to Bristol at some agreed-upon future date.
C) Bristol will receive an amount equal to the entire receivables transferred less any bad debts.
D) Bristol will receive a discounted amount but will not be responsible for any bad debts.
E) Bristol will receive a discounted amount and will also be responsible for any bad debts.