When factoring accounts receivable which of the following is true?

1. Factoring without recourse means the factor is responsible for uncollectible accounts.
2. Factoring without recourse means the originating firm is responsible for uncollectible accounts.
3. Factoring without recourse means the originating firm has no responsibility for returns or uncollectible accounts.
4. Factoring without recourse means the factor is responsible for returned goods.