A. consider a firm that has no fixed costs and that is currently losing money. are there any situations in which it would want to stay open for business in the short run? yes, the firm might want to operate in the long run. no, the firm will want to shut down. yes, the firm will operate if revenue is greater than variable costs. there is insufficient information to make this determination. b. a firm with no fixed costs should shut down. has an accounting profit. has a normal profit. is really in the long run.

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.