Guthrie Corporation Reports Accounts Receivable at a Net Realizable Value $\quad$

Guthrie Corporation reports accounts receivable at a net realizable value of $2,940,000 (gross receivable of $3,000,000 minus allowance for uncollectible accounts of $60,000) .Assume that there is an active market for these types of receivables and that the price is 94% of face value.To adjust the receivable's carrying value to fair value Guthrie would make which of the following entries?

A) DR Realized loss on receivables $\quad$ 180,000
CR Accounts receivable $\quad$ 180,000
B) DR Unrealized loss on receivables $\quad$ 120,000
CR Fair value adjustment-accounts receivable $\quad$ 120,000
C) DR Unrealized loss on receivables $\quad$ 180,000
CR Fair value adjustment-accounts receivable $\quad$ 180,000
D) DR Realized loss on receivables $\quad$ 120,000
CR Accounts receivable $\quad$ 120,000

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