Dexter Companies Has a Conventional Factoring Arrangement with Its Local

Dexter Companies has a conventional factoring arrangement with its local bank.Which of these would be a common characteristic of that type of financing arrangement?

A) Dexter Companies will receive the full amount of the accounts receivable included in this arrangement on an agreed upon date sometime in the future.
B) The responsibility for collecting the covered receivables lies with Dexter Companies.
C) Any bad debt that results from an account receivable included in this arrangement will be a cost to the bank.
D) Dexter Companies will pay a monthly fee to the bank and in turn will receive payment for the full amount of its accounts receivable.
E) The arrangement keeps the receivables as an asset of Dexter Companies but places a lien on those accounts in favor of the lending bank.