Each of the Following Is a Remedy in Case of a Breach

question 91

Multiple Choice

Each of the following is a remedy in case of a breach of contract EXCEPT:

• A) punitive damages.
• B) consequential damages.
• C) specific performance.
• D) rescind the contract.
• E) cancel the contract.

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Definitions:

Allowance for Doubtful Accounts

A contra asset account that represents an estimate of the amount of accounts receivable that may not be collectible.

Uncollectible Accounts

Accounts receivable that a company has deemed unlikely to be collected and thus written off as a loss.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on their payments.