What is the firm's additional profit contribution from sales under the proposed relaxation of credit standards? (See Table 14.5)

Live Wire Hot Rod Shop follows the revenue recognition principle. Live Wire services a car on July 31. The customer picks up the vehicle on August 1 and mails the payment to Live Wire on August 5. Live Wire receives the check in the mail on August 6. When should Live Wire recognize the revenue?

A. July 31 B. August 1 C. August 5 D. August 6

The case in the text involving Mr. Johnson, a 79-year-old, paralyzed, stroke victim who changed

his will and left all of his property listed in the will to his nurse of two years instead of his grandchildren involved duress exerted by the nurse. Indicate whether the statement is true or false