If the Bailed Property Is Severely Damaged or If It

question 6

True/False

If the bailed property is severely damaged or if it is destroyed, the bailment is ended.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of receivables that may not be collectible.

Net Income

A company's total earnings or profit, calculated as revenue minus expenses, taxes, and costs.

FOB Destination

A shipping term indicating that the seller is responsible for the goods until they are delivered to the buyer's specified location, whereupon title and risk of loss pass to the buyer.