Neyda buys a franchise from Oaxaca Artes, Inc. This provides Oaxaca with an outlet for the firm's goods, some of which Neyda is required to buy at an established price. In their agreement, Oaxaca may also specifya. none of the choices. b. the retail prices at which Neyda must resell the goods she buys. c. the franchise's business organizational form. d. the franchisor's non-culpability for any breach of the agreement.

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.