2)Torres Inc. recently began production of a new product, the halogen light, which required the investment of $600,000 in assets. The costs of producing and selling 10,00 halogen lights are estimated as follows: Variable costs per unit: Fixed costs: Direct materials $32 Factory overhead $180,000 Direct labor 12 S & A expenses 60,000 Factory overhead 8 S & A Expenses 7 Total variable he costs/unit $59 Torres is considering a selling price for the halogen light. Management has decided to use the cost-plus approach to product pricing and has indicated that the product must earn 10 % return on invested assets.

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.