1) indy sport and hobby's allowance for doubtful accounts had an unadjusted credit balance of $400. the manager estimates that $900 of the accounts receivable is uncollectible. using the balance sheet approach, the year-end adjusting entry for bad-debts expense includes a

a) debit to the bad-debts expense account for $900.

b) credit to the bad-debt expense account for $500.

c) credit to the bad-debts expense account for $1,300.

d) debit to the bad-debts expense account for $500.

2) net realizable value can be defined as the

a) gross accounts receivable minus the allowance for doubtful accounts.

b) amount of accounts receivable you don't expect to collect.

c) gross accounts receivable.

d) current bad debts expense

Grace period is a period of time before the credit card company starts charging late fees.truefalse

mark, a civil engineer, entered into a contract with david. as per the contract, mark agreed to design and build a house for david for a specified fee. mark provided david with an estimation of the total cost and the contract was mutually agreed upon. however, during construction, when mark increased the price due to a miscalculation on his part, david refused to pay the amount. this scenario is an example of a mistake.

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?