What entry format is appropriate if sales returns and allowances occur on factored accounts?

A)
$\begin{array}{cc}\text{ Sales Returns and Allowances }& \mathrm{XX}\\ \text{ Receivable from Factor }& \mathrm{XX}\end{array}$
B)
$\begin{array}{cc}\text{ Receivable from Factor }& \text{ XX }\\ \text{ Factoring Expense }& \text{ XX }\end{array}$
C)
$\begin{array}{lc}\text{ Sales Returns and Allowances }& \mathrm{XX}\\ \text{ Factoring Expense }& \mathrm{XX}\end{array}$
D)
$\begin{array}{cc}\text{ Receivable from Factor }& \text{ XX }\\ \text{ Accounts Receivable }& \text{ XX }\end{array}$

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reduction in sales revenue.

Receivable from Factor

Funds to be received from a factor, a financial intermediary that purchases receivables from a company, providing it with immediate cash.

Factoring Expense

Costs associated with the process of selling accounts receivable to a third party to obtain immediate cash.