USA Revenue Recognition for Factoring Companies

[fiveriver]

A factoring companies buys accounts receivables from other companies at a discount.

So an example is -

$100 invoice bought at a 3% discount = $97

Does the journal entry recognize the $3 as revenue or deferred revenue?

CR Cash 97
CR Deferred Revenue 3
DR A/R 100

in which case the revenue is recognized at payment of the invoice

or is it

CR Cash 97
CR Revenue 3
DR A/R 100

Thanks!