Quality Computer Company Agrees to Sell One Hundred Hard Drives

question 31

Essay

Quality Computer Company agrees to sell one hundred hard drives to Retail Electronics,Inc.The hard drives,which Retail Electronics ex?pressly requires to have certain amounts of memory,are to be shipped "F.O.B.Retail Electronics distribution center in Memphis,TN." When the drives arrive,Retail Electronics rejects them and informs Quality Computer,claiming that the drives do not conform to Retail Electronics' memory re?quirement.A few hours later,the drives are destroyed in a fire at Retail Electronics' distribution center.Will Quality Computer succeed in a suit against Retail Electronics for the cost of the goods?

Comprehend the normal balance and the mechanism of increasing or decreasing different types of accounts (assets, liabilities, equity, revenue, and expenses).

Understand the concepts and calculations related to the debt ratio and its implications on company risk.

Identify the correct journal entries for various types of transactions, including those affecting revenues, expenses, and dividends.

Recognize the function and purpose of major financial statements and their components.