A company uses a perpetual inventory system. The company began its fiscal year with inventory of $998,000. Purchases of merchand
ise on account during the year totaled $3,124,089. Merchandise costing $3,456,980 was sold on account for $6,909,879. Prepare the journal entries to record these transactions.
The distribution of income in the United States has become less equal over the last 20 years. This means that the difference between the rich and the poor has grown. It could mean that the rich have started getting more money while the poor get what they used to get, or even less. In any case, the gap between their income has changed greatly during this time period.
If inflation is lower than expected, it would benefit the union and it would be a disadvantage to Friendly Airlines because the real wage increase would now be 4%.
<h3>What is inflation?</h3>
Inflation is when there is a general increase in the general price level of an economy. If inflation turns out to be lower than expected, the employers would be at a disadvantage while the employees would be at advantage because there would be an increase in their real wages.
Increase in real wage = real increase in wage + (expected inflation + actual inflation)
