Carl Cohen expresses the theory of contractarianism: Only those who can understand contracts are rational beings and should have rights.

When an asset is sold from a company for an amount that exceeds its Net Value, what are the two debit accounts and the two credit accounts where entries are booked?   The first two blanks should contain the debt accounts and the last two blanks should contain the credit accounts. 

For companies that offer a warranty on the items sold, a company will need to record an estimate of the amount of expenses that may be incurred for honoring that warranty.  Many companies estimate the cost associated with each sale by using their past experience on the percentage of products needing repair and the average cost of repairs.   The two accounts that will be recorded with each sale to cover this potential repair are a debit to which account and a credit to which account?  The account debited should be in the first blank and the credit account should be in the second blank. 

The credit account in the last question is considered what TYPE of account?

Any PURCHASES made by a company with credit or on account will be recorded in what account?

Depreciation is the process of allocating the cost of a tangible asset to the periods in which that asset will be used to generate revenues.  The use of this asset will lower its value over time due to wear and tear.   

I have learned a great deal about accounting this term and I am proud of my achievements!    Thank you for your attentiveness in this class and participating in the classroom exchange.   Best wishes for your future!

The entry to record depreciation contains a debit to which account?  And a credit to which account?   Debit entry in the first blank and credit entry in the second blank.  

The accounting treatment of a contingent liability is based on two requirements: Likelihood of occurrence and whether or not the occurrence is estimable.  If the contingency is ‘Reasonably possible” how should it be treated on the financial statements?

When recording an asset in the general ledger of a company which of the following costs will not be used in determination of the amount booked as the assets value?