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lapo4ka [179]
3 years ago
5

Mark goes to Tony's Lumber Yard to buy some lumber to build a new roof for his cabin. Mark tells Tony, the lumber yard owner, to

provide him an exact type of wood that can resist the wood decay caused due to the damp environment around the cabin. Mark buys the lumber after Tony assures him that the wood is exactly what Mark is looking for. But the dampness affects the wood and it caves in. What warranty has Tony explicitly breached by not providing Mark the lumber he needed?
Business
1 answer:
musickatia [10]3 years ago
5 0

Answer: Tony has explicitly breached the Implied Warranty of Fitness for a particular purpose.

Explanation: the Implied warranty of fitness for a particular purpose takes effect when a buyer specifically asks a seller for a product that can be used for a particular purpose.

Because Mark (buyer) requested for the exact type of wood that can resist wood decay caused due to the damp environment of his cabin and Tony (seller) sells Mark lumber while assuring him that it's what he is looking for. Tony's assurance to Mark is known as the Implied warranty of fitness for a particular purpose, and since the wood is affected by dampness and caves then Tony has explicitly breached the warranty.

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The income statement of Sheridan Company for the month of July shows net income of $3,480 based on Service Revenue $7,890, Salar
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8 0
3 years ago
Each of the independent situations below describes a lease requiring annual lease payments of $10,000. For each situation, deter
Kazeer [188]

Answer:

Does the agreement specify that ownership of the asset transfers to the lessee? NO

Does the agreement contain a bargain purchase option? NO

Is the lease termequal to75% or more of the expected NOeconomic life of the asset? NO (4 < (.75 X 6))

Is the present value of the minimum lease payments equalto or greater than 90% of the fair value of the asset? NO

10,000 X 3.72325

=  (37233 < (.9 X 44,000))

Annuity  due : n=4, i=5%.

Does the agreement specify that ownership of the asset transfers to the lessee? NO

Does the agreement contain a bargain purchase option? YES  

Is the lease termequal to75% or more of the expected NOeconomic life of the asset? Yes (4 > .75X5)

Is the present value of the minimum lease payments equalto or greater than 90% of the fair value of the asset? NO

35,456 < (.9 X 43,000)

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5 0
3 years ago
On December 31, journalize the write-offs for 2016 under the allowance method. Also, journalize the adjusting entry for uncollec
ch4aika [34]

Answer:

Casebolt Company

Journal Entries:

Dec. 31, 2016

Debit Allowance for Uncollectible Accounts $30,000

Credit Accounts Receivable $30,000

To write-off uncollectible accounts.

Dec. 31, 2016

Debit Bad Debts Expenses $69,375

Credit Allowance for Uncollectible Accounts $69,375

To record bad debts for the year and bring the Allowance for Uncollectibles to a credit balance of $39,375.

Explanation:

a) Data and Calculations:

Credit sales for 2016 = $5,250,000

Uncollectible allowance based on past history and industry = 3/4% = $39,375 ($5,250,000 * 3/4%)

Actual accounts written off as uncollectible = $30,000

Customer Amount

Shawn Brooke   $4,650

Eve Denton           5,180

Art Malloy            11,050

Cassie Yost          9,120

Total                $30,000

Analysis:

Dec. 31, 2016 Allowance for Uncollectible Accounts $30,000 Accounts Receivable $30,000

Dec. 31, 2016 Bad Debts Expenses $69,375 Allowance for Uncollectible Accounts $69,375

7 0
3 years ago
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When there is an increase in quantity demanded, there will be a movement downward and to the right along a demand curve.

<h3>What is a demand curve?</h3>

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However, when there is an increase in quantity demanded, there will be a movement downward and to the right along a demand curve.

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Read more about demand curve

<em>brainly.com/question/9469192</em>

8 0
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