If an Offer Is Made by Mail and an Acceptance

question 25

Multiple Choice

If an offer is made by mail and an acceptance by mail is requested,when does a letter revoking the previous offer actually take effect?

• A)at the time it is posted
• B)at any time before a letter of acceptance is received by the offeror
• C)at the time it is received,if before acceptance
• D)Never.A revocation must be done in person.
• E)at any time before actual performance of the contract has begun

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collected.

Bad Debt Expense

A ledger showing the value of invoices that a business anticipates it will not be able to receive payment for.

Aging of Receivables

A method for managing accounts receivable by categorizing debts by their due ages to estimate the timing of collections.

Allowance for Doubtful Accounts

An estimation of the accounts receivable that a company does not expect to collect, serving as a contra account to accounts receivable.