On November 2, 2021, Rami Company factored receivables with a carrying amount of $600,000 to Rayyan Company. Rayyan Company assesses a finance charge of 3% 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 Rami Company for February.

10. Assume that Rami factors the receivables on a without recourse basis. The loss to be reported is. Give the Journal entry.

11.	Assume that Rami factors the receivables on a with recourse basis. The recourse obligation has a fair value of $1,500. Give the journal entry for this case.