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slava [35]
2 years ago
12

1. Clean Machines Company (Clean) makes washing machines. Over the phone, Clean offers to sell Dealers Appliance Outlet (Dealers

) one hundred model EZ2000 washers at a price of $150 per unit. Clean says that it will keep the offer open for ninety days. Dealers responds that within two or three weeks it will decide whether to accept. One week later, Clean faxes, and Dealer receives, notice that the offer is withdrawn. Dealer immediately phones Clean to accept the $150-per-unit offer. When Clean refuses to deliver at that price, Dealer files a suit. Clean asserts, first, that there is no contract and, second, that if there is a contract, it is unenforceable. Please discuss Clean’s assertions, is Clean correct?
Business
1 answer:
photoshop1234 [79]2 years ago
6 0

Answer:

Explanation:

In my opinion, I would like to say that Clean Machines Company is correct. If you look at it this way, you'd see that there actually isn't any contract between Clean Machines Company and Dealer. When it came to about offers, the person offering is able to revoke an offer before the offer is even accepted. And he won't be held responsible unless of course, the offer is irrevocable. Then, to make the offer to be irrevocable, the Dealer then would have needed to prove that an option was present, or prove that the offer is was not able to be revoked due to UCC provision.

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Answer:

The ending balance in the Allowance for Bad Debts is​ 20,500 CREDIT

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The ending balance of Allowance for bad debts would be the 2.5% of sales

The adjustment is made to get the allowance for Bad Debt match the estimate uncollectible ammounts.

Notice it state <em>"company adjusted for bad debt expense"</em>

This means<u> it debit this account as much as it needed to be</u> to make allowance match the estimate allowance.

The write-off are transaction durign the period. They are irrelevant

So the ending balance is:

<em>2.5% of credit sales of 820,000 = $20,500</em>

It is important to remember that <u>Allowance is a counter-asset account</u>. His <em>normal balance is credit</em>, so the<u> final balance is credit.</u>

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Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.

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Generally, the high risk that is associated with investments such as stocks, high-yield bonds, etc., is often perceived by investors to be worth the higher reward these investment brings.

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