The following note appeared in the Eesti Telekom 2003 Annual Report:

The factoring of receivables is the sale of receivables. Depending on the type of factoring contract, the buyer acquires the right to sell the receivables back to the seller (factoring with recourse) or there is no right to resell and all the risks and rewards are transferred from the seller to the buyer (factoring without recourse).
Explain how the accounting treatment would differ between a non-recourse and a recourse factoring agreement.