Tone loc and 89 of his biggest fans formed an s corporation, 2hit, inc., as the original ninety shareholders. tone then transferred some of his stock to his grandfather, four of tone's cousins, five of tone's children, three of tone's grandchildren, and 2 close friends. for the s corporation shareholder limit rules, how many shareholders does 2hit, inc. have?

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.