If a 17-Year-Old Enters into a Contract to Purchase a Car

question 40

Short Answer

If a 17-year-old enters into a contract to purchase a car, that contract is ________ at the minor's option until he or she reaches the age of 18.

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Definitions:

Allowance for Doubtful Accounts

An estimation recorded on financial statements reflecting the amounts expected to be uncollected from accounts receivable.

Total Assets

The sum of all assets, both current and long-term, owned by a business, reported on a company's balance sheet.

Specific Account

An individual account within a larger accounting system that tracks transactions related to a particular item or entity.