A and B are negotiating a contract according to which A will develop a system for B. Initially, A says, “I can build the system you described for 500 USD”. B says, “You can start the work if you can make it for 300 USD”. A does not respond verbally but goes ahead and does the job. (a) What should B pay once the system is delivered, and (b) why?

A and B are negotiating a contract according to which A will develop a system for B. Initially, A says, “I can build the system you described for 500 USD”. B says, “You can start the work if you can make it for 300 USD”. A does not respond verbally but goes ahead and does the job. (a) What should B pay once the system is delivered, and (b) why?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 5TP: You own a construction company and have recently received a contract with the local school district...

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