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A company using the perpetual inventory system purchased inventory worth $500,000 on account with terms of credit being 3/15, n/45. Defective inventory of $50,000 was returned 2 days later and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be:
A. $500,000 debit to Accounts Payable and $500,000 credit to Cash.B. $500,000 debit to Accounts Payable ,$486,500 credit to Cash and $13,500 credit to Inventory.C. $450,000 debit to Accounts Payable, $450,000 credit to Cash.D. $486,500 debit to Accounts Payable, $13,500 credit to Inventory and $450,000 credit to Cash.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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