Starlight Ltd

Starlight Ltd.assigned $600,000 of Accounts Receivable to Moonbeam Management as security for a loan of $580,000.Moonbeam charged a 3% commission on the amount of the loan; the interest rate on the note was 10%.During the first month, Starlight collected $320,000 of the assigned accounts, after deducting $500 of discounts.As well, Starlight accepted returns worth $2,600 and wrote off assigned accounts totalling $4,500.Entries made by Starlight during the first month would include a

A) debit to Cash of $322,600.
B) debit to Bad Debts Expense of $4,500.
C) debit to Allowance for Doubtful Accounts of $4,500.
D) debit to Accounts Receivable of $324,500.