Rescission of a Contract Means

question 11

Multiple Choice

Rescission of a contract means

• A) that the parties must make a new agreement discharging each other from rights and obligations under the original contract.
• B) that the parties must enter into a novation.
• C) that the parties must accept substantial performance.
• D) all of these.

Grasp the allowance method for uncollectible accounts and its impact on financial statements.

Understand the effects of failing to record estimated bad debts expense.

Know the procedures for writing off and recovering uncollectible accounts under the allowance method.

Understand the impact of write-offs on the carrying amount of accounts receivable.