DIRECTIONS: Read through each scenario and determine if the business uses a production concept, sales concept, or marketing concept.
1. "We're very focused on understanding our customers and meeting their needs. And you
have to be. For example, 50 years ago our firm used to manufacture typewriters - well
nobody buys them anymore. Therefore, to be successful you have to adapt and meet
changing consumer needs and, fortunately, our firm is committed to that goal. And it's
working, last year we achieved both record profits and record customer satisfaction
scores."
Concept
Justification

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.