Arnold Promised to Sell His Car to Adams in Lieu

question 46

Essay

Arnold promised to sell his car to Adams in lieu of full payment of his debt.However,in the written contract,Adams had forgotten to specify which car he wants to sell.Is there any remedy?

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Definitions:

Direct Materials Cost

The expense incurred for raw materials that are directly incorporated into a finished product.

T-Accounts

A simplified form of accounting ledger that uses a two-column format to show the increases and decreases in different financial accounts.

Job-Order Costing System

An accounting method that accumulates costs for individual units or small batches of production, often used for custom orders.

Direct Materials

Raw materials that are directly traceable to the production of a specific product.