On February 1, 2020, Sheffield Corp. factored receivables with a carrying amount of $670000 to Pharoah Company. Pharoah Company assesses a finance charge of 3% of the receivables and retains 5% 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 Sheffield Corp. for February.

Assume that Sheffield factors the receivables on a without recourse basis. The loss to be reported is

$33500.

$53600.

$0.

$20100.