Alexander Company Reported an Increase of $185,000 in Its Accounts

question 121

Multiple Choice

Alexander Company reported an increase of $185,000 in its accounts receivable during the year. The company's statement of cash flows reported $500,000 of cash receipts from customers. What amount of net sales must Alexander have recorded?

• A) $315,000.
• B) $685,000.
• C) $500,000.
• D) $185,000

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Definitions:

Course of Dealing

The pattern of actions between parties in a business transaction that establishes a common basis for understanding their conduct.

Right to Cure

The right to cure allows a party in breach of a contract a specified period to fix the breach before the other party can pursue legal remedies.

Substantial Impairment

A significant reduction in the ability or capacity of something, often used in legal contexts regarding the impairment of physical or mental functions.

Perfect Tender Rule

A principle in the sale of goods law that allows buyers to reject goods if they do not exactly meet the terms of the contract.