A customer replies to a positive confirmation as follows: "We dispute the $250 charge from your client as the goods were never received." This confirmation ________.

Question

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The customer's dispute over the charge because the goods were never received indicates that there is a question about the existence of the asset (the receivable from the customer's perspective). Since the customer is disputing the charge, it suggests that the valuation of the receivable (the $250 charge) cannot be considered accurate until the dispute is resolved. This does not necessarily provide evidence that the goods were never shipped or that the account should be written off; it simply highlights a discrepancy that needs to be addressed.

A Customer Replies to a Positive Confirmation as Follows: "We