The individual stockholders face limited liability in the form of money
Answer:
$6,076
Explanation:
the journal entries are:
May 5, merchandise purchased on account
Dr Purchases 90,160
Cr Accounts payable 90,1600
May ?, defective merchandise returned
Dr Accounts payable 6,076
Cr Purchases returns 6,076
When a company uses the periodic inventory system, it will use the purchases returns account to record any merchandise returns. When it uses a perpetual system, the merchandise inventory account is directly debited (when a purchase is made) or credited (when merchandise is returned).
Answer: When the price of clothes in world supply falls due to an expansion in the Chinese clothing industry, the exportation profit on clothes will drop, because the supply is above demand, which will reduced the selling price. The reduction in selling price will be because of competition of customers between the exporters.
The importers will not be affect much, because their will only buy from a dealer who is ready to sale in relation to the decrease in consumer price. Therefore the importers are not in a disadvantage of this event, rather it will grow their profit, as the competition between the exporters increase.
The exporters in this context are those that produce the clothes for exportation. And the importers are those that buys the clothes and sale it in another country.
If I wanted to know if a company made a profit or lost money last year I would refer to the Income statement.
If I wanted to find out how much debt the firm had used to finance its assets I would refer to the balance sheet.
If I wanted to know why it’s cash balance had changed over the past year I would refer to the cash flow statement.
The best option for her to choose is the one called Anual Compounding. With the rest of the compoundings she will have to pay more money. With a semi-annual rate she wil have to pay almost 1000 dollars more than in an anual compounding. With a quarterly period she will have to pay almost the same amount as a semi-annual period. Now with a monthly period she would have to pay almost 2000 dollars of interest.