Amos Has Purchased a Discontinued Radio Clock from the Local

question 18

Multiple Choice

Amos has purchased a discontinued radio clock from the local discount electronics outlet. Upon arriving home, he notices that the timer was not functional. He wonders if he could legally demand his money back and consults you. You tell him that

• A) he should first consult the bill of sale for any exemption clauses.
• B) there is an implied conditions that the goods will be of "merchantable quality".
• C) title has not passed until the seller has "put item into a deliverable state".
• D) since the item was discontinued, all sales are final, and the store does not need to return his money.
• E) sellers are strictly liable for what they sell, so simply bring it back for a refund.

Distinguish between different methods of accounting for uncollectible accounts.

Recognize the impact of credit card sales on receivables.

Understand the significance of formal instruments of credit, such as notes receivable.

Learn the accounting treatment for the write-off of uncollectible accounts.

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Definitions:

Antislavery Petitions

Formal requests made to a governing body or public official, aiming to end or restrict the institution of slavery.

David Walker

An African American abolitionist, writer, and anti-slavery activist who published an appeal in 1829 calling for the end of slavery and for equal rights for black people.

Violent Uprising

An aggressive and often armed rebellion against an authority or government.

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and compelled to work without wages.