Answer:
Db Accounts Payable or Cash____900
Cr Inventory account__________________900
Explanation:
The journal entry would be: If merchandise is returned to a supplier, a debit is made to Accounts Payable or Cash, and a credit is made to the Inventory account.
Answer:
$0
Explanation:
Given that,
Deposits = $100,000
Required reserve ratio = 25 percent
Total bank reserves = $25,000
Required reserve ratio refers to the ratio of deposits that are kept with the federal reserve.
Required reserves:
= Deposits × Required reserve ratio
= $100,000 × 0.25
= $25,000
Excess reserves:
= Total reserves - Required reserves
= $25,000 - $25,000
= $0
So, there is no excess reserves in this economy.
Money multiplier:
= 1/Required reserve ratio
= 1/0.25
= 4
Therefore, the total money creation potential of this deposit is zero.
D) All states have a flat state tax.
The owner is usually the one who developed the menu.