Huey signs a promissory note in reliance on Ian's assurance that it is not a note. Ian negotiates the note to Jinx Collection Agency, which is a holder in due course (HDC) of the note. When Jinx tries to collect, Huey refuses to pay. Under the HDC doctrine, the loss falls on
A. Huey only.
B. Huey and Jinx equally.
C. Huey or Jinx, depending on which party can afford the loss.
D. Jinx only.
Answer: A
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The final figure in the Schedule of Cost of Goods Manufactured represents the
a. cost of goods sold for the period. b. total cost of manufacturing for the period. c. total cost of goods started and completed this period. d. total cost of goods completed for the period.
Molton Inc., which operates a chain of retail toy stores, prepares GAAP based financial statements. Molton must use the allowance method to account for business bad debts for both book and tax purposes.
Answer the following statement true (T) or false (F)
Which category of product adopters relies on others for information and buys a product because their friends have already done so?
A. early adopter B. late majority C. laggards D. early majority E. innovators
The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: Accounts receivable$440,000?DebitAllowance for Doubtful Accounts 1300?CreditNet Sales 2,150,000?CreditAll sales are made on credit. Based on past experience, the company estimates 3.0% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
A. Debit Bad Debts Expense $6450; credit Allowance for Doubtful Accounts $6450. B. Debit Bad Debts Expense $13,200; credit Allowance for Doubtful Accounts $13,200. C. Debit Bad Debts Expense $14,500; credit Allowance for Doubtful Accounts $14,500. D. Debit Bad Debts Expense $11,900; credit Allowance for Doubtful Accounts $11,900. E. Debit Bad Debts Expense $16,450; credit Allowance for Doubtful Accounts $16,450.