Answer: Yes, because the helicopter manufacturer assumed the risk of the failure of the contract.
Explanation:
Based on the scenario given in the question, the subcontractor will likely prevail because the helicopter manufacturer assumed the risk of the failure of the contract.
Here, when the helicopter manufacturer entered into the contract with the subcontractor, the manufacturer was aware that the helicopters will be used in the "severely war-torn region.
In this case, the subcontractor wasn't aware of the information that the manufacturer knew of and therefore wasn't able to determine the risk that was involved in the contract.
Answer:
$1,520
Explanation:
Given that,
Accounts Receivable balance = $63,400
Allowance for Doubtful Accounts balance = $1,300
Services provided on account during year 2 = $152,000
Cash collected from accounts receivables = $161,300
Estimated Uncollectible accounts = 1% of sales on account
Therefore, the amount of uncollectible accounts expense during the year 2 is the 1 percent of the amount of services provided on account to a customer.
Hence, the amount of uncollectible accounts expense recognized on the Year 2 income statement is calculated as follows:
= Services provided on account × Estimated Uncollectible accounts
= $152,000 × 1%
= $1,520
Answer:
Money owing to bank, Motor Van, Stock of goods
Explanation:
