Credit Co. inadvertently cashes a check marked paid-in-full from Mark, who owes $3,000 but only pays $2,000. According to Uniform Commercial Code (UCC), section 3-311, Credit Co. has has 90 days from the date it cashed the check to offer repayment in the same amount to the debtor and thereby avoid an enforceable accord and satisfaction. Question 2 options: True False

Credit Co. inadvertently cashes a check marked paid-in-full from Mark, who owes $3,000 but only pays $2,000. According to Uniform Commercial Code (UCC), section 3-311, Credit Co. has has 90 days from the date it cashed the check to offer repayment in the same amount to the debtor and thereby avoid an enforceable accord and satisfaction. Question 2 options: True False

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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Dwane Johnson owes Verizon Wireless $1100. Johnson offers Verizon $500 in lieu of the original $1000 debt and Verizon accepts. Settling a claim by the debtor offering to pay less than the creditor claims to be owed is an example of A. Fraudulent Misrepresentation B. an accord and satisfaction. C.promissory estoppel. D. a release. Give correct answer with proper explanations
Required Information P6-5 (Algo) Preparing a Bank Reconciliation and Related Journal Entries LO6-4 [The following Information applies to the questions displayed below.] The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, Current Year, bank statement and the April ledger account for cash showed the following (summarized): BANK STATEMENT Checks Deposits Balance Balance, April 1, Current Year $32,500 Deposits during April $37,000 69,500 Interest collected 1,320 70,820 Checks cleared during April NSF check-A. B. Wright Bank service charges Balance, April 30, Current Year $46,100 270 160 24,720 24,450 24,290 24,290 Cash (A) Debit Credit April 1 Balance April Deposits 25,400 43,000 April Checks written 43,900 A comparison of checks written before and during April with the checks cleared through the bank showed…
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ank Reconciliation and Entries ne cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31,095 on October 31, 20Y6. Comparing the bar emos with the records revealed the following reconciling items: . Checks outstanding totaled $10,125. . A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. E. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. 3. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. e. A check drawn for $320 had been incorrectly charged by the bank as $230. f. Bank service charges for October amounted to $70. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement $ 31,095…
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