For Each of the Journal Entries Below,write a Description of the Underlying

question 74

Essay

For each of the journal entries below,write a description of the underlying event.Assume that for prepaid expenses original debits are made to an expense account.

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Definitions:

Dishonor

Failure to fulfill an obligation, especially the non-payment of a check or negotiable instrument when it is presented for payment.

Warranties

Legally binding promises made by a manufacturer or seller that a product or service meets certain quality and reliability standards or that certain repair or replacement conditions will be met.

Unaccepted Draft

A written order to pay a specified amount that has not been agreed to or signed by the party expected to pay.

Entitled To Enforce

A legal phrase indicating that a person or entity has the right to enforce a contract or legal instrument.