The direct write-off method violates the <u>matching principal</u>, which says that revenues and expenses are recorded in period that they occur (not necessarily when they are collected/written off).
Answer:
Sept 6. DR Inventory (80 * 20) 1,600
CR Accounts Payable $1,600
Sept 9. DR Inventory 80
CR Cash 80
Sept 10. DR Accounts Payable 63
CR Inventory 63
Sept 12. DR Accounts Receivable (26 * 31) 806
CR Sales Revenue 806
DR Cost of Goods Sold (21 * 26) 546
CR Inventory 546
Sept 14. DR Sales Returns and Allowances 31
CR Accounts Receivable 31
DR Inventory 21
CR Cost of Goods Sold 21
Sept. 20 DR Accounts Receivable (30 * 32) 960
CR Sales Revenue 960
DR Cost of Goods Sold (30 * 21) 630
CR Inventory 630
A settlement made with the aid of using a minor is frequently voidable, however a minor can most effective keep away from a settlement all through his or her minority popularity and for an inexpensive time after he reaches the age of majority. After an inexpensive length of time, the settlement is deemed to be ratified and cannot be avoided.
- Facts of the case: Sean, 17, a snowboarder, signs a long-term endorsement agreement for sportswear. At age 19, he wants to void the agreement by claiming that he lacked capacity when he signed the deal at 17.
- Rule of Law: Minor's Contracts are voidable at the option of Minor.
- Analysis: Since, Minor's Contract is voidable at the option of the Minor who Signs the Contact can either honor the contract or void the contract. A minor can void a contract for lack of capacity, only when he is still under the age of majority. If a minor turn 18 i.e., After attaining Majority and hasn't done anything to void the contract, then the contract can no longer be voided.
- Here, Sean has not done anything to void the contract on attaining the age of 18. So, he at the age of 19, cannot void the agreement by claiming that he lacked capacity when he signed the agreement at 17.
- Decision: Sean Vs. Sportswear Company: In the light of the above provisions, a Court will not permit Sean to now void the agreement.
Learn more about minority popularity here:
brainly.com/question/14457086
#SPJ4
please elaborate i dont understande what your asking.
