Which of the following would occur if a company factored $2,500,000 of receivables with a 2% fee?

Name: Which of the following would occur if a company factored $2,500,000 of receivables with a 2% fee?
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Question

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The company would receive a credit to cash of $2,450,000 (the amount received after the 2% fee) and would need to record a debit to factoring fee expense for the $50,000 fee. There would be no entry to accounts receivable or factoring fee receivable since the receivables have been sold to the factor.

Which of the Following Would Occur If a Company Factored