Beech Co. purchased a trade invoice with a face amount of $50,000 and charged a 20% factoring fee. The trade invoice was 20 days past due at the date of purchase, and the selling company had recorded a related allowance for credit losses of $4,000 prior to the sale. Beech estimates its allowance for credit losses based on an expected credit loss rate of 7%. What journal entry should Beech record for the purchase of the receivables? A. Debit trade receivables $40,000; debit credit loss expense $3,500; credit allowance for credit losses $3,500; credit cash $40,000 B. Debit trade receivables $40,000; debit credit loss expense $4,000; credit allowance for credit losses $4,000; credit cash $40,000 C. Debit trade receivables $50,000; debit credit loss expense $3,500; credit allowance for credit losses $3,500; credit gain on purchase of trade receivables $10,000; credit cash $40,000 D. Debit trade receivables $50,000; debit credit loss expense $4,000; credit allowance for credit losses $4,000; credit gain on purchase of trade receivables $10,000; credit cash $40,000