Answer:
The Journal entries are as follows:
(i) Sales revenue A/c Dr. $900
To Cash $900
(To record the correction in sales revenue)
(ii) Merchandise Inventory A/c Dr. $200
To Cost of Goods sold $200
(To record the merchandise returned)
Note:
(1) At the time of sale, the cash would have been debited with the amount of $900 and the sales revenue would have been credited with the amount of $900. Now, the cash of $900 should be credited as it was debited earlier.
(2) The inventory account also credited at the time sale, so it should be debited and the cost of goods sold debited at the time of original sale, so it need to be credited.
Answer:
=4/7 cans of Belgium coffee for one can of US coffee
Explanation:
Cost of 1 can of coffee in US = $5
Cost of similar can of coffee in Belgium = EURO 7
Real Exchange Rate (Euro/$) =
Nominal Exchange rate × 
= 0.8 × 5/7
=4/7 cans of Belgium coffee per can of US coffee
Nominal exchange rate refers to the exchange rate between two countries which is not adjusted for inflation.
Nominal exchange rate when adjusted for inflation is known as real exchange rate.
Real rate = Nominal rate - Inflation rate
Answer:
An opportunity cost
Explanation:
The opportunity cost is the cost where the loss occurs from the benefit could have been enjoyed in the case when the best alternative choice was selected Since in the question it is mentioned that the company operating at a capacity and than lose revenue from the regular customers so it is an opportunity cost
Answer:
Time period corresponds to recession is D. 1937-1939
Step-by-step explaination:
Recession period is the period in which there is negative growth in stock market i.e that period in which the graph declines or accompanied by drop.
In the given interval 1931-1935 upto period 1933 the graph declines but after that it increases so it does not corresponds to recession period.
In the given interval 1931-1934, same reason as above.
In given interval 1933-1936, the graph goes to upward direction so it does not corresponds to recession period.
In the given interval 1937-1939,the graph declines upto 1939 so it corresponds to recession period.
