CA Corp issued a 5-year loan of 100,000 to Barry. Barry will repay the loan in five years with annual interest payments based on a variable interest rate equal to the one-year LIBOR rate plus a spread of 120 basis points. Barry is concerned that there will be large fluctuations in interest rate, which will negatively affect his ability to repay the loan. You are given the following information on interest rate swaps: Counterparty Swap Rate Variable Rate Allen 2.5%2.5% LIBOR 1.2%1.2% Clark 2.5%2.5% LIBOR 1.2%1.2% Bruce 2.5%2.5% LIBOR 1.2%1.2% The swap term for each of the interest rate swap is 5 years. Required:
Which situation is the most accurate representation of the best strategy chosen by Barry to reduce the impact of the large interest rate fluctuations?

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.