Answer:
Option (D) is the right answer.
Explanation:
According to the scenario, the most appropriate answer is option ( D) because Stanley smith is a customer of the bank as he has a checking account in the bank.
While the other options are wrong because of the following reasons:
Option (A) is incorrect because the company lucky licks Inc. is the customer of the bank, not any person. Option (B) is incorrect because Cara is not the customer of the bank as she only uses the bank's ATM. Option (C) is incorrect because Herman is not the customer of the bank as he only cashes his checks in the bank.Suppose the rate of return on a 10-year T-bond is 6.90%, the expected average rate of inflation over the next 10 years is 2.0%, the MRP on a 10-year T-bond is 0.9%, no MRP is required on a TIPS, and no liquidity premium is required on any Treasury security. Given this information, what should the yield be on a 10-year TIPS? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.
Answer:
4%
Explanation:
We start with the nominal rate of return and then we adjust it to inflation.
real rate of return = nominal rate of return - inflation rate = 6.9% - 2% = 4.9%
finally we must subtract the maturity risk premium (MRP) of the bonds:
bond yield = real rate of return - MRP = 4.9% - 0.9% = 4%
"Forcing insureds to sue the insurer to collect on a claim by offering substantially less than the amount eventually recovered is a violation of the:"_________.
Answer:
Unfair Claims Settlement Practices Act
Explanation:
Here fundamentally, the act which will be acted on the given sentence is generally known as Unfair Claims Settlement Practices Act. Unfair claims practice is the inappropriate restraint of a request by an insurer or an endeavor to diminish the intensity of the claim. By interlacing in unfair claims practices, an insurer strives to diminish its values. Nevertheless, this is unlawful in various jurisdictions. Additionally, most maximum states possess formulated a version of this type of rule. Denominated essentially the Unfair Claims Settlement Practices Act, it defends safeguard consumers from the unfair manner by insurers in the appeals settlement method.
XYZ Company produces a significant daily amount of electronic waste. The company disposes the waste into the ocean despite strict government regulations regarding waste disposal. This scenario illustrates that XYZ Company has failed to fulfill its _____.
Answer:
Legal responsibility
Explanation:
Since there have been regulations put in place by the government, it is thereforre a legally binding agreement between XYZ company and any other companies that does same as XYZ company.
The failure of XYZ company to honour the set regulations is a breach in its legal responsibilty alongside its corporate social responsibilty as well and it can be taken up by the government by either charging the XYZ company to court or revoking their operating license.
Cheers.
Frank and Lillian Gilbreth developed the principle of ___________, which said that every job could be broken down into a series of elementary motions.
A. motion economy
B. marginal productivity
C. division of labor
D. micro-motion analysis
Answer: (A) Motion economy
Explanation:
The motion economy is the term which refers to the economical movement that improve the various types of methods in an organization. It is also known as the set of rules which improve the work manually and also reduce the fatigue related to the work.
According to the given question, Frank and the Lillian Gilbert is developing the motion economy principle for breaking the job into the different elementary motions.
Therefore, Option (A) is correct.
Frank and Lillian Gilbreth developed the principle of micro-motion analysis, which breaks down every job into elementary motions for improved efficiency and productivity.
Explanation:The principle that Frank and Lillian Gilbreth developed is known as micro-motion analysis. This principle suggests that every job can be broken down into its most basic, elemental motions. These motions, when optimized and streamlined, can greatly increase efficiency and productivity in the workplace. The concept was an important contribution to modern industrial engineering and management practices. It was largely based on their time and motion studies.
Learn more about Micro-motion Analysis here:https://brainly.com/question/32934852
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What taxes apply to the benefits under an individual Disability Income Policy on which the insured has paid the premiums?
Answer:
The correct answer is (A)
Explanation:
Taxes are used to increase government revenue, and to improve government budget. No tax is applied to the benefits under an individual disability income policy. There are various reasons why no tax is applied, but the major reason is that premiums are not deductible. Overall, governments usually don't apply taxes on individual disability income and generally give subsidies.
In assigning missions, the commander must consider that national honor and prestige may be as important to a contributing nation as combat capability. All partners must be included in the _____ and their opinions must be sought in mission assignment.
Answer:
planning process
Explanation:
Partners must be included in the planning process and their opinions must be sought in mission assignment. It is improper for the opinions of other contributing nations to be neglected during the planning process of a mission. As stated in the question, the commander must consider that national honor and prestige may be as important to a contributing nation as combat capability.
____________ involves planning the selling program and implementing and evaluating the personal selling effort of the firm. The tasks involved in managing personal selling include setting objectives; organizing the salesforce; recruiting; selecting; training and compensating salespeople; and evaluating the performance of individual people.
Answer: Sales management
Explanation:
The sales management is basically refers to the sales technique in which the various types of practical applications are developed in an organization for management of the sales operation.
By using the sales management technique we can easily implement various types of sales technique for coordinating the sales operation.
It basically involve various types of selling program and also helps in evaluating the products for the purpose of personal selling. It also helps in organize the sales force in an organization.
Therefore, Sales management is correct answer.
The described process involves business strategies for planning, implementing, and evaluating a company's personal selling efforts, which includes salesforce management, training, and performance evaluation.
Explanation:The process being described involves planning the selling program and implementing and evaluating the personal selling effort of the firm, which falls under the scope of business, specifically sales and marketing. Crucial tasks in managing personal selling include establishing objectives for sales teams, structuring the sales force, recruiting, selecting, and training salespeople, determining compensation schemes, and critically assessing sales performance.
Part of the process also includes creating systems to identify training and development needs, as well as developing employee selection systems that ensure candidates are well-matched with job requirements. This extends to designing and running training programs, evaluating their effectiveness, and being involved in the overall strategic planning of marketing campaigns. Such elaborate planning of personal selling is essential for the effective deployment of sales strategies, ensuring a well-prepared sales force, and the achievement of organizational sales targets.
Fiona installed a new pool for $9940 using a 12 month deferred payment plan with an interest rate of 22.53%. What is the balance after the deferment period A payment of $397 are each month?
A. $7,761.84B. $9,940.00C. $5,176.00D. $12,425.84
Answer:
A. $7,761.84
Explanation:
Balance after deferment period before any payment made.
A = P(1 + r)^t
A = $9940*(1 + 0.2253)^(12/12)
A = $12179.5
Final balance after monthly payment.
A_f = $12179.5 - (12*397)
A_f = $7415.5
Therefore, The balance after the deferment period A payment of $397 are each month is $7,761.84.
A ____________ gap between GDP and NDP indicates an increasing obsolescence/depreciation of capital goods..
A. growing C
B. shrinking
C. constant
D. all the above
Answer:
Explanation:
GDP is gross domestic product and NDP is net domestic product.
GDP measures market value of total goods and services produced in a particular period of time.
NDP is net domestic product . In its calculation, we deduct the value of depreciation of capital goods produced from the value of GDP.
So
NDP = GDP - depreciation .
So growing gap between GDP and NDP reflects the increasing obsolescence of capital goods , which warrants replacement of capital goods .
OPTION A is correct.
Suppose there are only two firms in an economy: Cowhide, Inc. produces leather and sells it to Couches, Inc., which produces and sells leather furniture. With each $1,000 worth of leather that it buys from Cowhide, Inc., Couches, Inc. produces a couch and sells it for $2,600. Neither firm had any inventory at the beginning of 2015. During that year, Cowhide produced enough leather for 25 couches. Couches, Inc. bought 80% of that leather for $20,000 and promised to buy the remaining 20% for $5,000 in 2016. Couches, Inc. produced 20 couches during 2015 and sold each one during that year for $2,600. What was the economy's GDP for 2015?
a. $25,000
b. $52,000
c. $57,000
d. $65,000
Answer:
C) $57,000
Explanation:
The gross domestic product is the total production of final and legal goods and services in an economy.
total production of final goods = (20 couches x $2,600 per couch) + (5 leather sets x $1,000 per set) = $52,000 + $5,000 = $57,000
the leather sets are considered final products since they are part of the ending inventory of Cowhide, Inc.
"Which of the following would be classified as investment in the national income accounts? A) An increase in corporate stock volumes during the year. B) The purchase of medical supplies by the National Guard. C) An increase in government spending. D) An increase in business inventories.
Answer:
D) An increase in business inventories.
Explanation:
The words investment can mean different thing to different people, but to an economist, the word investment mean the acquisition of resources by any economic agent which will increase the productive capacity of the economy.
The correct answer here is (D) An increase in business inventories. this is because the factor of production that produced the inventories received factor income and if ignored in the measurement will create disequilibrium in the three methods of measuring GDP (i.e. output method, expenditure method and output method).
A) An increase in corporate stock volumes during the year is not correct because it is transfer of ownership not addition to production.
C) An increase in government spending is not because they are expenditure on goods and services that is not part of capital formation.
Paul sues Dan for "aesthetic pollution." The basis for his suit is Dan's habit of wearing clothes Paul considers ugly. Paul's complaint offers details of Dan's "ugly" clothing in many separate, numbered paragraphs. However, no law requires one to pay damages for wearing clothes that another considers ugly and for causing aesthetic dissatisfaction to some other party. Thus, Dan wants to defeat Paul's claim as fast as possible. The best procedural device for doing so is the:________ A. Motion to dismiss. B. Motion for summary judgment. C. Motion for judgment notwithstanding the verdict. D. Motion for a directed verdict.
Answer:
A. Motion to dismiss
Explanation:
A motion is a way of asking some decision from the court. For an order or other event, the group must "pass" the court. Practice of motion is a significant part of the proceedings.
A party may seek to dismiss the case for a variety of reasons, including failure of jurisdiction in the subject matter, lack of personal jurisdiction, inadequate location, insufficient proceedings, failure to state a claim for which relief may be granted, and failure to join the party concerned.
In this case it is for failure to state a claim upon which relief can be granted (or demurrer).
Gonzales Company has developed an integrated system that coordinates the flow of all goods, services, and information into and out of the organization, working with raw material vendors as well as customers to improve service and reduce costs. The firm is said to be using
The Options are :
a) participative management.
b) top-down management.
c) strategic cost management.
d) supply chain management.
e) management by objectives (MBO).
Answer : D - supply chain management.
Explanation:
Supply chain management means managing the flow of goods and services with the intention of maximizing customer value as well as competitive advantage in the marketplace.
Anna Jonas owns a manufacturing firm in Indonesia and strongly believes that it is important that workers' rights be respected. However, because of the recent economic meltdown, she makes the management pay workers a wage which is below ethical standards. In addition, the working conditions are below standards because of low investment in safety equipment. She knows her actions are unethical but continues to do so to avoid major losses. Jonas is most likely to be experiencing ________.A) cognitive dissonance
B) emotional contagion
C) ethical evasion
D) self-concordance
E) positivity offset
Answer: cognitive dissonance
Explanation: Cognitive dissonance takes place in the fields of psychology when an individual holds two or more irrational beliefs, concepts, or principles, or takes part in a motion that runs counter to any of these three and thereby perspectives mental stress.
Inconvenience is caused by an individual's belief that conflicts with new interpreted proof (statistics) in which they attempt to take steps to address the inconsistency in order to minimize their distress.
In simple words, The concept behind cognitive dissonance shows that people find psychological continuity regarding their life span and the earth's objective reality.
Increasing the federal tax on gasoline would cause shipping costs in the United States to increase:________
Answer:
Positively
Explanation:
In the e-commerce sector, consumers would often feel the effects of an increase in Federal gas tax since the shipping cost of products they purchase would be based on the prices of gasoline.
In effect, retailers of these products would transfer the increased shipping cost of this products resulting from higher gas tax to the consumers.
In applying fiscal policy Conservatives will normally seek to limit government and will be inclined to ________ taxes (T) during a recession to stimulate the economy..
Answer:
Decrease
Explanation:
Fiscal policy is an important policy tool which is used by the government to account for revenue and expenses. During a boom stage, when the economy is improving the government implements more taxes. Similarly, in a recession period, where economic growth is negative an expansionary discretionary fiscal policy is applied. In this type of fiscal policy, taxes and government expenses both are concentrated to remove the pressure.
The general ledger shows a balance of $ 66 comma 200 in the Merchandise Inventory account at the end of the period. The physical inventory count shows inventory of $ 63 comma 000. (Assume a perpetual inventory system.) The adjusting entry includes a ________.
Answer:
The adjusting entry includes a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200
Explanation:
Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately
The adjusting entry is calculated by subtracting the physical inventory account from the merchandise inventory account
Given
Physical Inventory Account= $63,000
Merchandise Inventory Account= $66200
Adjusting Entry = Merchandise Inventory Account - Physical Inventory Account
Adjusting Entry = $66,200 - $63,000
Adjusting Entry = $3200
Identify the inventory costing method best described by each of the following sepatate statements. Assume a period of increasing costs.
1. Yields a balance sheet inventory amount often markedly less than its replacement cost.
2. Results in a balance sheet inventory amount approximating replacement cost.
3. Provides a tax advantage (deferral) to a corporation when costs are rising.
4. Recognizes (mulches) recent costs against net sales.
5. The preferred method when each unit of product has unique features that markedly effect cost.
Answer:
1. Yields a balance sheet inventory amount often markedly less than its replacement cost. LIFO
2. Results in a balance sheet inventory amount approximating replacement cost. FIFO
3. Provides a tax advantage (deferral) to a corporation when costs are rising. LIFO
4. Recognizes (mulches) recent costs against net sales. LIFO
5. The preferred method when each unit of product has unique features that markedly effect cost. WEIGHTED AVERAGE
Explanation:
1. LIFO yields a balance sheet inventory amount often markedly less than its replacement cost. The reason is because the in a period of rising costs, since the last stock of goods bought are sold first, this will result in the remaining stock of goods to be of lower costs as they had been bought at an earlier date at a cheaper rate.
2. FIFO results in a balance sheet inventory amount approximating replacement cost because the first set of goods purchased are sold first; and if the assumption holds that costs are rising with time, then the balance stock of goods would have been bought at a later date at a higher cost, hence the value of the balance (ending) inventory will be almost equal to its replacement cost.
3. LIFO provides a tax advantage (deferral) to a corporation when costs are rising because it results in a lower ending inventory value since the more expensive inventory has been sold. Hence, the closing stock and Net income will be low and income tax will be low.
4. LIFO matches recent costs against net sales because the 'cost of sales' are made up of the recent purchases which are sold first
5. The preferred method when each unit of product has unique features that markedly effect cost is the WEIGHTED AVERAGE because it calculates the average period cost of all goods in stock and apportions the total to individual items.
Which of these is a measure of risk to reward earned by an investment over a specific period of time?
A. Coefficient of variation
B. Market deviation
C. Standard deviation
D. Total variation
Answer:
The correct answer is A. Coefficient of variation.
Explanation:
Coefficient of variation is the risk of an asset or portfolio per unit of return.
Coefficient of variation = Standard deviation/ Return
Lower the coefficient, better it is.
If portfolio have same return but different risk or same risk but different return then inventor will prefer portfolio with
higest return at a given level of risk orLowest risk at given level of returnIf portfolio have different returns with different risks, then protfolio with lower coefficient of variation is preferred.
The Coefficient of variation is the measure that best represents the risk to reward ratio for an investment over a specific time period.
Explanation:Among the options provided, the measure risk to reward earned by an investment over a specific period of time is best represented by the Coefficient of variation (Option A). The coefficient of variation is calculated by dividing the standard deviation of the investment's returns by the mean (expected value) of those returns.
This statistic provides information on the degree of variability in relation to the average return, thus reflecting risk in comparison to the potential reward. Option B, Market deviation, is not a commonly used term in this context. Option C, Standard deviation, measures the variability of returns, but does not directly relate it to the reward. Lastly, Option D, Total variation, is a broad term, and not one that specifically measures risk to reward ratio.
Because of a recent job promotion, Jo-Anne needed to find a place to live in the city quickly. She agreed to purchase via phone a 2,000 sq. ft. apartment located a few blocks from her new office. Jo-Anne wired the owner a payment of $500,000 against the $3.7 million negotiated price of the apartment. Without waiting for further word from the owner, Jo-Anne moved into the apartment and redecorated the entire interior, at a cost of $350,000. After living in the apartment for two months, Jo-Anne wired another $500,000 payment to the owner, who called immediately after receiving the payment and said the deal was off. Can Jo-Anne keep the apartment?
Answer:
Of course Jo-Anne Roberts can keep the apartment.
Explanation:
Jo-Anne and the previous owner of the apartment had a valid contract by which Jo-Anne was to pay $3.7 million for the apartment. She has already partially completed her performance on the contract, so the seller must perform his part of the contract.
Olivia found herself in over $10,000 worth of credit card debt after she graduated from college. Most of her purchases on her credit cards came from purchases at the mall which included clothing, shoes, and purses. She also used her credit cards to finance her vacation to Mexico during spring break. Overwhelmed by her high credit card balances, Olivia has decided she wants to start digging herself out of credit card debt. What is the first step she should take?
Answer:
stop using her credit card
Explanation:
Based on the information provided within the question it can be said that the first step that Olivia should take is to stop using her credit card. People have adopted a consumer culture, and that has skyrocketed since the invention of the credit card, as it makes it easy for individuals to impulse buy something even if they do not have the money for it. By switching from credit card to cash only it will allow you to not overspend and make hasty impulse buys, thus allowing you to save money and hopefully get out of credit card debt.
Solutions to the moral hazard problem include:
a. monitoring and enforcement of restrictive covenants
b. greater reliance on debt contracts than financial intermediatries
c. greater reliance on.
d. equity contracts and less on debt cotracts
e. low net worth
Answer: Option a
Explanation: In economics, when someone raises their risk exposure when covered, moral hazard happens, particularly when an individual takes unnecessary risks because someone else bears the burden of all those losses.
Thus, the insuring party should enforce and monitors some restrictive covenants. Restrictive covenants refers to the agreement specifying some acts that the insured party must not do or else the potential benefits he or she is willing to get will be revoked.
Hence from the above we can conclude that the correct option is A.
Ortiz is a manager of BRS Corp. Ortiz's division did not meet financial targets this year. Ramirez, manager of another division, has indicated that Ortiz's division incurred significant costs which resulted in Ramirez's division setting record profits for the year. As a result, performance for BRS as a whole exceeded projections. Which of the following pairings of organizational structures for BRS and bonus for Ortiz is most plausible?A. Cooperative structure; no bonus due to failure to meet divisional targetB. Competitive structure; no bonus due to failure to meet divisional targetC. Cooperative structure; a bonus for increasing organizational performanceD. Competitive structure; a bonus for increasing organizational performance
Answer:
C) Cooperative structure; a bonus for increasing organizational performance
Explanation:
Since apparently Ortiz's bad performance actually helped Ramirez and the whole organizational to exceed expected profits, then he should also receive a bonus for his participation in increasing the company's profits.
I'm not sure how this can happen, maybe the company operates two supermarkets and since Ortiz's supermarket operated really badly, then Ramirez's supermarket exceeded expected sales.
Assume that the market for base-balls is in equilibrium. There is a sudden decrease in income throughout the economy. If all else is held constant, we would expect that if base-balls are a(n) ________ good, then the demand curve will shift to the ________, causing the equilibrium price and quantity to ________.a) normal; left; rise b) normal; right; rise c) inferior; right; fall d) normal; left; fall e) inferior: left; fall
Answer:
d) normal; left; fall
Explanation:
A normal good is a good whose demand increases when income increases and whose demand falls when income falls.
An inferior good is a good whose demand increases when income falls.
If baseball is a normal good and income falls, quantity demanded falls. The demand curve would shift to the left. This leads to a fall in price.
If baseball were an inferior good, if income falls, quantity demanded rises and the demand curve shifts to the right and the equilibrium price and quantity rises.
I hope my answer helps you
A licensee using a franchise trade name, or advertising as a member of a cooperative group, must clearly and unmistakably indicate in the advertisement adjacent to any specific properties advertised for sale or lease in any media: -the licensee's name -broker or firm name and:_________
Answer:
The correct answer is: firm telephone number.
Explanation:
Whenever a licensee uses a broker or firm to grant his or her operations, details of that broker or firm (name and local phone number) must be publicly provided so, in front of misleading practices or hesitation about the licensee, investors can reach the franchise to find out more information on this person or even file claims when suitable.
a _____ savings account pays interest and allows for a regular deposits and withdrawals
Answer:
Regular savings account
Explanation:
One requires to commit small amounts of income each month on a regular savings account.
In exchange for providing your savings provider a fixed level of income every month, they normally pay you a higher rate of return than, for instance, if you invest a lump sum in a cash ISA or easy access account.
However, the best regular savings rates also exceed the prices on the longer fixed-rate offers offered.
This type of account has rigorous terms of service that may cause you to lose your competitive rate if you fail to adhere to them.
Whenever Claudia helps Dr. Stevens with his records, he manages to brush against her chest. She has spoken to her manager about this, requesting help to stop this behavior, but nothing is being done. For Claudia, this may constitute an example of what type of sexual harassment?
Answer:
This is an example of a Hostile Work Environment.
Explanation:
Sexual harassment is commonly defined as advances of a sexual nature that are unwanted. They may include remarks of a sexual nature, sexual demands etc. It is also a form of discrimination that breaches Title VII of The Civil Rights Act of 1964.
The Equal Employment Opportunity Commission (EEOC) classifies harassment of a sexual nature into two(2) namely;
i) Quid Pro Quo
ii) Hostile Work Environment.
Quid Pro Quo; Is Latin for something for something. This involves out-rightly expressed or suggestive demands for sexual favors in exchange for some sort of benefit.
Hostile Work Environment; This occurs when a co-worker makes repeated sexual comments or advances which in turn creates a toxic work environment.
For Claudia, this is a perfect example of a Hostile Work Environment.
Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market.
When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?
A) problem recognition
B) general need description
C) product specification
D) product value analysis
E) performance review
Answer:
Answer to this question is Option A i.e. problem recognition.
Explanation:
Here, Jane Harper, the owner of Harper farms come across a problem related to the damaged coops. This problem acts as a trigger for his decision of buying new coops. Jane has identified a problem here and brought in his notice that he has to buy new coops for his business. Therefore, Jane is at the very first stage of buying decision process i.e. problem recognition.
Qualified Retirement plans must provide a written Investment Policy Statement. Under ERISA interpretations, all of the following items must be included in the Investment Policy Statement EXCEPT:
[A] the client/participants investment goals and objectives
[B] risk tolerance and liquidity requirements of the client/participant
[C] time horizon
[D] a list of the actual securities in the portfolio
Answer:
D: a list of the actual securities in the portfolio
Explanation:
Under Employee Retirement Income Security Act of 1974 (ERISA) interpretations, the details of risk, time horizon, target asset mix, investment goals and objectives, and guidelines for review are among the items which must be disclosed in the statement. A list of the specific investments in the plan is not a required disclosure.
Following are the merchandising transactions for Dollar Store.
Nov.
1 Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB
shipping point, invoice dated November 1.
5 Dollar Store pays cash for the November 1 purchase.
7 Dollar Store discovers and returns $200 of defective merchandise purchased
on November 1, and paid for on November 5, for a cash refund.
10 Dollar Store pays $75 cash for transportation costs for the November 1
purchase.
13 Dollar Store sells merchandise for $1,620 with terms n/30. The cost of the
merchandise is $810.
16 Merchandise is returned to the Dollar Store from the November 13
transaction. The returned items are priced at $300 and cost $150; the items
were not damaged and were returned to inventory.
Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.
Answer:
Journal entry are as follows:
Nov 1
Dr Inventory $1,500
CR Accounts payable $1,500
Nov 5
Dr Accounts payable $1,500
Cr Cash $1,470
Cr Purchase discount $30
Nov 7
Dr Cash $196
Dr Purchase discount $4
Cr Inventory $200
Nov 10
Dr Freight-in $75
Cr Cash $75
Nov 13
Dr Accounts receivable $1,620
Cr Sales $1,620
Dr Cost of Sales $810
Cr Inventory $810
Nov 16
Dr Sales returns and allowances $300
Cr Accounts Receivable $300
Dr Inventory $150
Cr Cost of sales $150
Explanation:
*Using gross method of perpetual inventory, all purchases and sales are recorded at gross amount and discounts are only recorded when availed.
*Purchase returns made after payment or settlement must also be reverted and deducted to cash amount received.
*During sales, there will be two entries. 1 is to record the sales and accounts receivable and 2 is to record cost of good sold and deduction to inventory.
Final answer:
The merchandising transactions for Dollar Store are journalized for a perpetual inventory system using the gross method, detailing purchases, sales, returns, discounts, and transportation costs.
Explanation:
To journalize the given merchandising transactions for the Dollar Store under a perpetual inventory system using the gross method, follow these entries:
November 1: Purchased merchandise (Inventory) $1,500 on account with terms 2/5, n/30. Since payment is made within the discount period, a discount of $30 (2% of $1,500) can be claimed.
Dr. Inventory $1,500
Cr. Accounts Payable $1,500November 5: Paid cash for November 1 purchase, less return and discount.
Dr. Accounts Payable $1,470 ($1,500 - $30 discount)
Cr. Cash $1,470November 7: Returned defective merchandise for a cash refund.
Dr. Cash $200
Cr. Inventory $200November 10: Paid cash for transportation costs.
Dr. Inventory $75
Cr. Cash $75November 13: Sold merchandise on account.
Dr. Accounts Receivable $1,620
Cr. Sales $1,620
Dr. Cost of Goods Sold $810
Cr. Inventory $810November 16: Accepted return of merchandise from customer.
Dr. Sales Returns and Allowances $300
Cr. Accounts Receivable $300
Dr. Inventory $150
Cr. Cost of Goods Sold $150
This series of entries accurately reflects the transactions, capturing both the sales and inventory aspects of the operations, applying the correct discounts, returns, and additional costs, such as transportation.