Alex bought a used motorcycle from Sheldon's dealership for $28,000 to be paid in installments over three years. He traded in his old motorcycle for $8,000 at th same time, but Sheldon wanted to keep the two transactions separate for financial reasons and he promised to issue a bank draft to Alex for the trade-in. Sheldon assigned the $28,000 contract to SNL Finance. The first Alex knew of this was when he received copies of both contracts and an assignment notice to make the payments to SNL. This was a valid assignment as Alex was notified in writing. Alex had not yet received the $8,000 and, when he calls Sheldon, he finds the Healership has been sold to someone else and Sheldon's whereabouts are unknown. Multiple Choice Alex may deduct $8,000 from what he owes SNL and make payments to them totaling $20,000. SNL must try to find Sheldon and get the $8,000 from him, but if they cannot, Alex must pay them. None of the choices. Alex can try to find Sheldon and get his money from him, but he must pay SNL.

Alex bought a used motorcycle from Sheldon's dealership for $28,000 to be paid in installments over three years. He traded in his old motorcycle for $8,000 at th same time, but Sheldon wanted to keep the two transactions separate for financial reasons and he promised to issue a bank draft to Alex for the trade-in. Sheldon assigned the $28,000 contract to SNL Finance. The first Alex knew of this was when he received copies of both contracts and an assignment notice to make the payments to SNL. This was a valid assignment as Alex was notified in writing. Alex had not yet received the $8,000 and, when he calls Sheldon, he finds the Healership has been sold to someone else and Sheldon's whereabouts are unknown. Multiple Choice Alex may deduct $8,000 from what he owes SNL and make payments to them totaling $20,000. SNL must try to find Sheldon and get the $8,000 from him, but if they cannot, Alex must pay them. None of the choices. Alex can try to find Sheldon and get his money from him, but he must pay SNL.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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