Answer:
Journal Entries:
Dec 31 Bad Debts Expense $4875
Allowances for doubtful accounts $4875
Feb 1 Allowances for doubtful accounts $580
Accounts Receivable - P.Park $580
June 05 Accounts Receivable - P.Park $580
Allowances for doubtful accounts $580
June 05 Cash $580
Accounts Receivable - P.Park $580
Explanation:
On December 31 Chen estimates the potential receivable expected to be not paying to him. Therefore, he write off the receivable from balance sheet using the percentage of sales method of receivable of ($975000 x 0.5% = $4875). On Feb 1 Chen write off P.Park from receivable of $580 as he comes to know he will not pay but on June 5 P.Park pay him $580. First Chen reinstate the receivable afterwards he collect cash from receivable.
The court hearing the case may determine whether Lamont is a merchant by assessing whether Lamont:
1. Employed in the deal with Ted others who have the status of a merchants.
2. Is a person who deals in shoes.
3. Is a person who by occupation hold himself out as having knowledge or skills unique to the shoes involved in the transaction.
Before Lamont can be subjected to special business standard in court, it must be confirmed whether he is truly a business man as he claimed and the steps above are the ones that will be looked into to confirm his status as a business man.<span />
Answer:
Chemical Mines
The most likely outcome of this situation given that some shareholders are happy with the existing management is:
A) proxy fight for control of the board.
Explanation:
Proxy fight is a competitive struggle that shareholders of Chemical Mines can engage in to support their factional sides by using proxy votes to gain control of the board of directors, thereby stirring decisions to their sides. Proxy votes are the votes of shareholders elected to represent the absentee shareholders by those present at the annual general meeting, where directors can be appointed.
• Initially default risk increases, yield increases, price of AIG decreases
• After government intervention, default decreases, yield decreases, price of AIG increases
