1_Contracts (2) - Protected View • Saved to this PC - O Search (Alt+Q) Love yout References Mailings Review View Help oft Defender Advanced Threat Protection and it hasn't detected any threats. If you need to edit this file, click enable editing. En Question 1 Ellie owned a 1926 Barker Salamanca Rolls Royce and, in order to raise a deposit for her new house, she decided to sell the Rolls Royce to Sam, a mechanic, for $50,000. As part of the deal, Ellie agreed to have it restored for Sam. Ellie asked Richard, a vintage car restorer, to carry out the work within eight weeks for $8,000. A month later, Ellie was worried that Richard would not meet the deadline and, eventually offered him an extra $2000 if the restoration was completed on time. Sam was anxious to have the car on time as he was going to sell it on and had a purchaser for it, so he offered to give Richard $500 for doing the work. Richard completed the restoration on time but Ellie has refused to pay him the extra $2,000, arguing that Richard was already obliged to complete the work for $8,000. Furthermore, Sam has told Richard that he can only give him $100, which Richard has reluctantly agreed to accept. Can Richard insist on the full payments promised by Ellie and Sam?
1_Contracts (2) - Protected View • Saved to this PC - O Search (Alt+Q) Love yout References Mailings Review View Help oft Defender Advanced Threat Protection and it hasn't detected any threats. If you need to edit this file, click enable editing. En Question 1 Ellie owned a 1926 Barker Salamanca Rolls Royce and, in order to raise a deposit for her new house, she decided to sell the Rolls Royce to Sam, a mechanic, for $50,000. As part of the deal, Ellie agreed to have it restored for Sam. Ellie asked Richard, a vintage car restorer, to carry out the work within eight weeks for $8,000. A month later, Ellie was worried that Richard would not meet the deadline and, eventually offered him an extra $2000 if the restoration was completed on time. Sam was anxious to have the car on time as he was going to sell it on and had a purchaser for it, so he offered to give Richard $500 for doing the work. Richard completed the restoration on time but Ellie has refused to pay him the extra $2,000, arguing that Richard was already obliged to complete the work for $8,000. Furthermore, Sam has told Richard that he can only give him $100, which Richard has reluctantly agreed to accept. Can Richard insist on the full payments promised by Ellie and Sam?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 8RE
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Question 1
Ellie owned a 1926 Barker Salamanca Rolls Royce and, in order to raise a deposit for her new
house, she decided to sell the Rolls Royce to Sam, a mechanic, for $50,000. As part of the deal,
Ellie agreed to have it restored for Sam. Ellie asked Richard, a vintage car restorer, to carry out
the work within eight weeks for $8,000. A month later, Ellie was worried that Richard would not
meet the deadline and, eventually offered him an extra $2000 if the restoration was completed on
time. Sam was anxious to have the car on time as he was going to sell it on and had a purchaser
for it, so he offered to give Richard $500 for doing the work. Richard completed the restoration
on time but Ellie has refused to pay him the extra $2,000, arguing that Richard was already
obliged to complete the work for $8,000. Furthermore, Sam has told Richard that he can only
give him $100, which Richard has reluctantly agreed to accept. Can Richard insist on the full
payments promised by Ellie and Sam?
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