Partners a and b have a profit and loss agreement with the following provisions: salaries of $40,000 and $45,000 for a and b, respectively; a bonus to a of 10% of net income after salaries and bonus; and interest of 15% on average capital balances of $40,000 and $60,000 for a and b, respectively. one-third of any remaining profits or losses are allocated to b and the balance to a.

if the partnership had net income of $52,000, how much should be allocated to partner a?

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.