Answer:
The Journal entries are as follows:
(i) On May 1, 2019
Inventory A/c Dr. $87,000
To Notes payable $87,000
(To record purchase of inventory)
(ii) On Nov 31, 2019
Interest Expense A/c Dr. $5,075
To Interest payable $5,075
(To record the Accrued the interest.)
Workings:
May to Nov = 7 months
Therefore,
Interest Expense = 87,000 × 10% × 7÷12
= $5,075
Answer:
The ansewr is a barter based economy.
In a barter based economy, goods are exchanged for other goods, because no good that takes the functions of money exists (unit of account, store of value, and medium of exchange).
Barter economies can work on a limited scope, but to a larger extent, they can become inefficient, because this type of economy requires a double coincidence of wants: both parties of the transaction must desire the other party's goods.
This loan is best classify as a <u>conventional mortgage loan</u>.
<h3>What is a conventional mortgage loan?</h3>
This refers to a conforming loan which simply means that it meets the requirements for Fannie Mae or Freddie Mac.
This type of mortgages have a fixed rate of interest and means that the interest rate does not change throughout the life of the loan. Also, they are not guaranteed by the federal government and as a result have stricter lending requirements by banks and creditors.
In conclusion, the entities Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages from lenders and sell them to investors.
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<span>Answer: Direct questioning.
Explanation: In Direct Questioning method, the researcher asks specific questions to the respondent. This method of pretesting is used mostly in the starting stage of Ad development. The other methods of pretesting are: Focus Group, Portfolio Test, Paired Comparison Test, Order-of-merit Test, Mock-Magazine Test, Perceptual Meaning Studies, Direct Mail Test, Physiological Testing.</span>
