Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $123,530. The seller agreed to allow a 5.75 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,310. Southwest Milling had to hire a specialist to calibrate the loader. The specialist’s fee was $920. The loader operator is paid an annual salary of $30,860. The cost of the company’s theft insurance policy increased by $1,980 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $7,200.

Determine the amount to be capitalized in an assest accound for the purchase of the front end loader.

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale.required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse.b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this.c. explain the difference between sale of receivables with recourse as oppose to without recourse.