On 2 May, Maisarah wrote to Ramlah offering to sell her a female Bengal cat and requiring an answer through post. The letter was misdirected and Ramlah only received Maisarah’s letter on 5 May. Ramlah posted her acceptance on the same day, but it only reached Maisarah on 9 May. Meanwhile, on 8 May, Maisarah, not having received an answer by 7 May as she had expected, sold the cat to someone else. Maisarah argued that there could not be a binding contract unless she actually received Ramlah’s acceptance letter. Until that happens, she is free to sell the cat to another buyer. Advise Ramlah, whether there was a valid contract between her and Maisarah.

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.