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Unformatted text preview: The debit for the finance charge should be called finance charge in the second entry. EXERCISE 7-16 The loss on sale of receivables is $8,000. EXERCISE 7-17 The loss on sale of receivables is $6,000. The revenue from the sale should be called Financing revenue for Mays Finance Corporation. EXERCISE 7-18 Use 12% as the effective market rate because it is the interest cost for the borrowers in these transactions. 1. Gain on sale of the land is $310,000 2. Service revenue is $221,164 7-1...
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- Spring '10