Question

what are the alternatives for this issue and recommend the best alternative and its implication

Production Contracts In an attempt to increase revenues, Danica entered into two production contracts in geographical areas pre- viously untapped by TOI TOI completed a contract for Birmingham Heat totalling $380,000. The contract called for the production of several hundred specialty fireplaces. Production of the fireplaces was completed on December 15, 2017, and shipped via Merck Liners FOB shipping point on December 28. On January 5, 2018, Danica found out that the fireplaces had still not arrived at Birmingham Heat due to a customs issue. Birmingham Heat hopes to have the issue resolved in two weeks. The second contract called for the production of $420,000 of fireplaces and barbecues to Maldovia Heat Inc., located in a small country overseas. The products were delivered to the overseas company on December 18, 2017. On December 22, political unrest toppled the government in the country. The new government that was installed has refused to allow any monies to leave the country. Danica has recorded the revenue and related receivable for both contracts for the year ended December 31, 2017 Production Accident al tuhes used in its barbecues was incorrectly made. As

Answer 1

TOI should help Birmingham Heat to resolve the custom issue at the earliest and follow-up for the money once the goods reach Birmingham Heat.

Maldovia Heat Inc. should be requested to give work instead of money. TOI can request Maldovia Heat Inc. to give any work that is needed by TOI. This will then be a barter exchange.