All of the following are true about using a predetermined overhead rate to apply overhead except, Multiple Choice Estimates are used to calculate the rate. Using this rate provides managers with up-to-date estimates of the costs of their processes during the period. A single allocation basis may fail to provide useful allocations for all production departments. The rate is prepared at the beginning of the period. The rate is used to apply overhead at the end of the accounting period.

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.