Answer:
Allied Merchandisers
Journal Entries
Date General Journal Debit Credit
03-May Merchandise Inventory $20,000
To Cash $20,000
05-May Accounts Receivable $21,000
To Sales $21,000
05-May Cost of goods sold $15,000
To Merchandise Inventory $15,000
07-May Sales Returns and allowances $1,750
To Accounts Receivable $1,750
07-May Merchandise Inventory $1,250
To Cost of goods sold $1,250
08-May Sales Returns and allowances $300
To Accounts Receivable $300
15-May Cash $18,571
Sales Discounts $379
($18950*2%)
To Accounts receivable $18,950
($21000-$1750-$300)
Which of the following would normally involve long-term financing?
Purchase of modern equipment;
Long-term financing is used for major purchases that are financed for a time period greater than one year such as new product development, building or purchasing new facilities, and replacing capital equipment.
Answer:
Explanation:
The policy of tax cut will be less effective in country B than in country A since the value of the tax multiplier is lower in country B.
The multiplier effect refers to the increase in final income arising from any new injections.
Calculating the Multiplier Effect for a simple economy
k = 1/MPS
A = 1/0.1 =10
B= 1/.5=2
