On December 1,2018,Restaurant Equipment Company Sold Machinery to a Customer

question 169

Multiple Choice

On December 1,2018,Restaurant Equipment Company sold machinery to a customer for $25,000.The customer could not pay at the time of sale but agreed to pay 9 months later and signed a 9-month note at 11% interest.What was the total amount of cash collected by Restaurant Equipment on the maturity of the note? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

• A) $27,750
• B) $27,063
• C) $22,938
• D) $2063

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Definitions:

One-Year Provision

The one-year provision is a legal clause, often found in statutes of frauds, which requires certain contracts to be in writing and signed if they cannot be performed within one year.

Majority Rule

A principle in democracy stating that the decisions and choices of the greater number of participants should guide the actions and policies of the group.

Integrated Contracts

An integrated contract is a written agreement that constitutes the final and complete understanding between parties, encompassing all terms and conditions.

Parol Evidence Rule

A legal principle that prevents the parties to a written contract from presenting extrinsic evidence of terms of the agreement that contradict, modify, or vary contractual terms.