Gipson Furniture Factors $500,000 of Receivables to Kwik Factors, Inc

Gipson Furniture factors $500,000 of receivables to Kwik Factors, Inc. Kwik Factors assesses a 3% service charge on the amount of receivables sold. Gipson Furniture factors its receivables regularly with Kwik Factors. What journal entry does Gipson make when factoring these receivables? $\begin{array}{lrr}\text { a. Cash } ..............................................................& 485,000 & \\\text { Loss on Sale of Receivables } .............................. & 15,000 & \\\text { Accounts Receivable } ......................................... && 500,000 \\ \\ \text { b. Cash }.............................................................. & 485,000 & \\\text { Accounts Receivable }........................................ && 485,000 \\ \\ \text { c. Cash }.............................................................. & 500,000 \\ \text { Accounts Receivable } ......................................&& 485,000 & \\ \text { Gain on Sale of Receivables }............................... & & 15,000 \\\\ \text { d. Cash } .............................................................. & 485,000 \\ \text { Service Charge Expense } ...................................... & 15,000 & \\\text { Accounts Receivable } ........................................& & 500,000\end{array}$