Chapter 5 Problem 2

Stiles Company uses the Perpetual Inventory system and had the following transactions during the month of October:

Oct. 2 Sold merchandise to Boyle for $5,700, terms of 2/15, n/30. Cost of these units was $3,500.
Oct. 4 Boyle returned $400 of merchandise purchased on Oct. 2. Cost of these returned items was $225.
Oct. 13 Collected the amount due from Boyle

Required: Prepare the journal entries for each of these 3 transactions

Which of the following housing decisions provides a person with both housing and an investment? a. selling a share in a cooperative. b. buying a single-family home. c. renting an apartment. d. subletting a condominium. 2b2t

Southeastern bell stocks a certain switch connector at its central warehouse for supplying field service offices. the yearly demand for these connectors is 15,000 units. southeastern estimates its annual holding cost for this item to be $25 per unit. the cost to place and process an order from the supplier is $75. the company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days.a) find the economic order quantity.b) find the annual holding costs.c) find the annual ordering costs.d) what is the reorder point?

After the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy?