Question: Please do not copy from Chegg. Only attempt if you are sure about the answer. Solve in a step by step manner, explaining each step.

Please do not copy from Chegg. Only attempt if you are sure about the answer. Solve in a step by step manner, explaining each step.

Chipper Corporation factored $200,000 of accounts receivable without recourse to First National Bank and incurred finance charges of 3%. The bank also withheld 5% for sales returns and allowances. The journal entry to record the sale of receivables by Chipper Corporation would include an :

A. debit to Cash for $200,000

B. debit to Cash for $194,000

C. debit to Cash for $184,000

D.credit to Factoring Revenue for $6,000

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