On April 1 of the Current Year, Troubled Company Factored

On April 1 of the current year, Troubled Company factored receivables with a carrying value of $85,000 for $60,000 in cash from Scrooge Lenders. The transfer was made without recourse. On April 1, Troubled would:

A) Credit deferred interest expense for $25,000.
B) Credit factored accounts receivable for $85,000.
C) Debit discount on liability for $25,000.
D) Debit loss on sale of receivables for $25,000.