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    sale of receivables and annual depreciation

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    Attached are the two exercises I need assistance with. I am having a bit of difficulty calculating annual depreciation.

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    The journal entries would be as follows:

    To record sale of receivables:

    DR: Cash 679,000
    DR: Finance charge expense 21,000
    CR: Receivables 700,000

    To record the sale of merchandise:

    DR: Cash 3,840
    DR: Service charge expense 160
    CR: Revenue 4,000

    DR: Cost of goods sold 4,000
    CR: Merchandise Inventory 4,000

    As of 1/1/02 we have a balance of the following:
    Cost - accumulated ...