Hydro Source Company Contracts to Sell Pumps,tanks,and Water Storage Systems

question 22

Multiple Choice

Hydro Source Company contracts to sell pumps,tanks,and water storage systems to InFlo Irrigation,Inc. Before the goods are delivered,InFlo indicates that it will not be able to pay. Hydro Source can

• A)forceInFlo to accept and pay for the goods.
• B)requireInFlo to find a buyer for the goods.
• C)resell the goods and recover any damages from InFlo.
• D)do nothing.

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Definitions:

Salaries Expense

The total amount paid to employees for services rendered over a specific period, recorded as an expense in financial accounting.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period.

Debit Balance

Refers to the balance that remains in a financial account when the total debits exceed the total credits.

Credit Balance

An accounting balance where the sum of credits exceeds the sum of debits in an account, often indicating money owed to the account holder.