On October 1, 2014, Brosnan Company Sells (Factors) $500,000 of Receivables

On October 1, 2014, Brosnan Company sells (factors) $500,000 of receivables to Nation Factors, Inc. Nation assesses a service charge of 3% of the amount of receivables sold. The journal entry to record the sale by Brosnan will include:

A) a debit of $500,000 to Accounts Receivable.
B) a credit of $515,000 to Cash.
C) a debit of $515,000 to Cash.
D) a debit of $15,000 to Service Charge Expense.