Gross Domestic Product Consumption $100 $120 200 180 300 240 400 300 500 360 Expected Rate of Return Amount of Investment 25% $0 20 20 15 40 10 60 5 80 Refer to the tables of information for a private closed economy. The multiplier for this economy is Multiple Choice 2. 2.5. 3. 4.

Assume the perpetual inventory method is used. 1) the company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) the company returned $1,200 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 $18,800 cash. what effect will the return of merchandise to the supplier have on the accounting equation?