Katz Received an Unordered Credit Card from the Rand Department

question 17

Essay

Katz received an unordered credit card from the Rand Department Store. The card was stolen by Cooper, who charged purchases of $300 at the store. Is Katz liable for these purchase?

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Definitions:

Adjusted Trial Balance

A statement showing the balances of all accounts, including adjustments, at the end of an accounting period to ensure the total debits equal total credits.

Perpetual Inventory Method

An inventory management system that continuously updates the quantity and value of inventory on hand and sold, using real-time data.

Financial Statements

Reports summarizing the financial performance, position, and cash flows of a business for a specific period, including balance sheet, income statement, and statement of cash flows.

Contra Accounts

Accounts used in accounting to reduce the value of a related account to derive its net balance; examples include accumulated depreciation.