On October 1, 2015, Milago Company Sells (Factors) $700,000 of Receivables

On October 1, 2015, Milago Company sells (factors) $700,000 of receivables to Beanfield Factors, Inc. Beanfield assesses a service charge of 3% of the amount of receivables sold. The journal entry to record the sale by Milago will include

A) a debit of $700,000 to Accounts Receivable.
B) a credit of $721,000 to Cash.
C) a debit of $721,000 to Cash.
D) a debit of $21,000 to Service Charge Expense.