During the fall of 2007, the United States economy began a descent into deep recession. As a result, the federal government and
the Federal Reserve took action to stimulate economic growth. Which of the following would have been an appropriate fiscal policy? Choose one or more:
A. the federal government spending more money to build more infrastructure
B. the federal government increasing its regulation of banks
C. the federal government beginning to close failing banks
D. the federal government providing tax refunds to many taxpayers
E. the Federal Reserve increasing the money supply to reduce the interest rate
A. the federal government spending more money to build more infrastructure
B. the federal government increasing its regulation of banks
C. the federal government beginning to close failing banks
D. the federal government providing tax refunds to many taxpayers
E. the Federal Reserve increasing the money supply to reduce the interest rate
1 answer:
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Answer:
The entries are as follows
To record estimated returns on Sales
Debit: Sales Refund Payable Account $131,400
Credit: Accounts Receivables $131,400
To record estimated Cost of Sales returns
Debit: Inventory Returns Estimated Account $77,700
Credit: Inventory on Sales on Returns $77,700
Explanation:
To derive the figure for Sales Refund payable for the year
6% of $2,190,000
= = $131,400
To derive the figure for Inventory cost on Sales Refund payable for the year
6% of $1,295,000
= = $77,700