Kate company uses a perpetual inventory system.
record the journal entries for the following transactions:

a. on july 16, kate sold $1,200 of merchandise with terms of 2/10, n/30. the cost of the merchandise was $720.
b. on july 19, the customer returned $200 of the merchandise from (a). the cost of the merchandise was $120.
c. on july 22, the customer paid the entire balance due to kate.

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?