Yes, table should have waited for a dead ball. But I would also accept (though may not be supported by rule) the table sounding the horn during a lull in action (ball being walked up court; team setting up a play; ball at disposal for throw-in or free throw).
You are right about how the play should have been handled. Basket good, remove DQ'd player, Team B with end-line throw-in.
If player would have received a 6th foul later there is no remedy. Just remove player and continue game.
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A-hole formerly known as BNR
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