Multiple Choice Question 128 On February 1, 2017, Sheridan Company factored receivables with a carrying amount of $710000 to Pharoah Company. Pharoah Company assesses a finance charge of 4% of the receivables and retains 6% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Sheridan Company for February. Assume that Sheridan factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is $ 74500. $ 28400. $ 42600. $ 31900