Answer:
A.$13,328
B. Merchandise Inventory
Explanation:
Calculation for Halibut Company the amount of cash required for the payment
Calculation for Purchase:
= [$18,600 - ($18,600 × 2%)]
=$18,600-$372
=$18,228
Calculation for the return:
[($5,000 – ($5,000 × 2%)]
$5,000-$100
=$4,900
Hence:
Purchase - Return
=$18,228 -$4,900
=$13,328
Therefore the amount of cash required for the payment will be $13,328
b. The account to be credited by Halibut Company to record the return will be Merchandise Inventory.
Answer:
What are the variables that determine the price of a specific good?
Explanation:
Economics can be classified into two (2) main categories and these include;
1. Macroeconomics: it can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics: can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.
Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
An example of a microeconomic question is "What are the variables that determine the price of a specific good?"
<span>The yield on a company's bonds, r is given by:
r = r* + drp + lp + ip + mrp
For Kop's bonds, r = 6.5%, drp = 0.4%, lp = 1.7%, ip = 1.5% and mrp = 0.4%.
Therefore, r* = 2.5%</span>