Answer:
a. Reformation
Explanation:
In the given instance, it is clearly observed that the Vehicle Identification Number is not correctly written in the contract, and that happened due to typing errors, and was not intentional.
In these cases the courts order to reform the contract, and then the reformed contract shall reflect the intentions of both the parties as what they intend.
In the given case also, reformation will take place as the error is not due to intentionally, fraud with the other party. Thus correct option is:
a. Reformation
doing something with criminal intention.
Answer:
Statement of Net Assets or statement of financial position.
Explanation:
Statement of net assets shows the permanently restricted, temporarily restricted, and unrestricted funds. This is represented into he equity section.
A template for the creation of statement of financial position is provided by the IRS form 990.
Unrestricted assets are donations to the organisation that can be used for general expenses.
Temporarily restricted assets are set aside for a particular project by donors
Permanently restricted assets are those that are invested in perpetuity, and the revenue earned is used for a specific purpose.
Answer: There will be a surplus at the increased price.
Explanation: Acc. to the law of demand as the price of a good rises the quantity demanded for the good will fall. This is represented by a movement up along the demand curve.
Acc. to the law of supply as price of a good rises the sellers will supply more units of the good. This is represented by a movement up along the supply curve.
At the increased price, there will be a surplus in the market given by Q's - Q'd.
Eventually, the surplus will lead to a fall in the price of pants till demand for the good is equal to its supply.
Answer:
Dr Allowances for sales returns $600
Cr Sales refund payable $600
Being increase sales refund estimate
Explanation:
The sales refund account is liability account that should naturally have a credit balance.
In the current period the balance in the sales refund payable account should be $900 in total,but there is a balancing credit amount already in the account,intuitively, the amount needed to raise the balance in the account to $900 is $600.
The necessary entries required for the sales refund payable is shown below:
Dr Allowances for sales returns $600
Cr Sales refund payable $600
Being increase sales refund estimate
There is no adjusting entry to accounts receivable as that deals with receipt of cash from sales transactions and not the actual sales transactions.
When the refund is eventually settled with cash, a debit is posted to sales refund payable and a credit to cash account