Business, 19.12.2019 02:31 arianaguerin

Darlington company entered into the following business events during its first month of operations. the company uses the perpetual inventory system.

1) the company purchased $12,500 of merchandise on account under terms 3/10, n/30.
2) the company returned $2000 of merchandise to the supplier before payment was made.
3) the liability was paid within the discount period.
4) all of the merchandise purchased was sold for $19,000 cash.
what effect will the return of merchandise to the supplier in event (2) have on darlington's financial statements?

a. assets and stockholders' equity decrease by $2000.
b. none.
c. it is an asset exchange transaction.
d. assets and liabilities decrease by $1940.
e. assets and liabilities decrease by $2000.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 19:20

Chester has a credit score of 595 according to the following table his credit rating is considered to be which of these

Answers: 1

Answer

Business, 21.06.2019 20:40

Which of the following actions is most likely to result in a decrease in the money supply? a. the discount rate on overnight loans is lowered. b. the government sells a new batch of treasury bonds. c. the federal reserve bank buys treasury bonds. d. the required reserve ratio for banks is decreased. 2b2t

Answers: 2

Answer

Business, 22.06.2019 02:10

The federal reserve's organization while all members of the federal reserve board of governors vote at federal open market committee (fomc) meetings, only of the regional bank presidents are members of the fomc. the federal reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions? u.s. banks that cannot borrow elsewhere governments in developing countries during currency crises u.s. state governments when they run short on tax revenues the federal reserve's primary tool for changing the money supply is . in order to decrease the number of dollars in the u.s. economy (the money supply), the federal reserve will government bonds.

Answers: 1

Answer

Business, 22.06.2019 16:20

Stosch company's balance sheet reported assets of $112,000, liabilities of $29,000 and common stock of $26,000 as of december 31, year 1. if retained earnings on the balance sheet as of december 31, year 2, amount to $74,000 and stosch paid a $28,000 dividend during year 2, then the amount of net income for year 2 was which of the following? a)$23,000 b) $35,000 c) $12,000 d)$42,000

Answers: 1

Answer

You know the right answer?

Darlington company entered into the following business events during its first month of operations....

Questions