Frank Ritter, Inc. enters into an arrangement with Hisker Enterprises whereby Hisker will assume $100,000 of Ritter's receivables for a 6% fee. These receivables have a related allowance for doubtful accounts of $3,500.
Assuming the transaction was a factoring arrangement without recourse, which one of the following entries will Ritter make?

A.
DR Cash $94,000
DR Loss on sale of receivables 6,000
CR Due to Hisker Enterprises $100,000

B.
DR Cash $94,000
DR Allowance for doubtful accounts 3,500
DR Loss on sale of receivables 2,500
CR Accounts receivable $100,000

C.
DR Cash $94,000
DR Loss on sale of receivables 6,000
CR Accounts receivable $100,000

D.
DR Cash $100,000
CR Accounts receivable $100,000