Price ceilings create five important effects: a. excess demand, long lines, poor service, efficiency, and arbitrage.
b. surpluses, increases in product quality, search costs, gains from trade, and resource attrition.
c. shortages, reduced time costs, low vacancy rates, blat, and deadweight loss.
d. shortages, reductions in product quality, wasteful lines, a loss of gains from trade, and a misallocation of resources.

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.