I would have to say D. all of the above
Explanation:
The journal entries are shown below:
On October 12
Purchases ($47,500 x 0.99) $47,025
To Account Payable $47,025
(Being the purchase of merchandise is recorded)
On October 12
Freight In $670
To Cash $670
(Being the freight charges is recorded)
On October 31
Account Payable $47,025
To Interest Expense $475
To Cash $47,500
(Being the payment for purchases is recorded)
Account Receivable $31,400
to Sales Revenue $31,400
(To record the sales on account)
On October 31
Cost of Goods Sold $20,550
Ending Inventory $59,145
To Beginning Inventory $32,000
To Purchases $47,025
To Freight In $670
(Being recording the adjusting entry is made)
Answer:
Explanation:
In response to the price rise from $50 to $60, the quantity demanded of product X drops from 400 to 300 units. We know that price elasticity of demand is a measure of the responsiveness of changes in demand as a result of a price change. Thus,
% change in price = 
= 
= 0.1818
% Change in Quantity demanded
=
= 
= -0.2857
Thus,
Price elasticity of demand = 
= 
= -1.5715
Therefore, the price elasticity of demand = -1.5715
Answer:
The statement is: True.
Explanation:
Perfectly competitive markets are theoretical markets characterized by having many buyers and sellers, where products are homogeneous, having easy conditions for entry or exit of new firms, and where producers are price-takers because the price is determined by supply and demand.
In such a scenario, <em>companies could not set different prices such as in a price discrimination approach because consumers would rather go to the competition.</em>
Answer:
The hypothetical tax expense =$340,000 with assumption that tax rate is 34%.
Explanation:
The above figure is worked out like this=$1,000,000*34%=$340,000
The hypothetical tax expense is pretax income multiplied with statutory income tax rate.
In our scenario pretax book income is $1,000,000 and tax rate is 34%
Please note that 34% tax rate is assumed as the said rate is not given in question.
