Modern Footwear LLC received intimation of claim for OMR 20,000 as damages because some foot-wears were not delivered in time for an order. The Modern Footwear admits the delay but disputes the amount of the claim pointing out that alternative foot-wear cost no more than OMR. 15,000. How would you advise the Modern Footwear Company to treat the claim when finalising the financial statements for the year? a. Account for a liability of OMR. 15,000 b. Ignore the claim c. Account for a liability of OMR. 20,000 d. Account for the best estimate as liability

Modern Footwear LLC received intimation of claim for OMR 20,000 as damages because some foot-wears were not delivered in time for an order. The Modern Footwear admits the delay but disputes the amount of the claim pointing out that alternative foot-wear cost no more than OMR. 15,000. How would you advise the Modern Footwear Company to treat the claim when finalising the financial statements for the year? a. Account for a liability of OMR. 15,000 b. Ignore the claim c. Account for a liability of OMR. 20,000 d. Account for the best estimate as liability

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 33P

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