On January 10, Andrew Farley uses his Paltrow Co. credit card to purchase merchandise from Paltrow Co. for $17,500. On February 10, Farley is billed for the amount due of $17,500. On February 12, Farley pays $8,750 on the balance due. On March 10, Farley is billed for the amount due, including interest at 4% per month on the unpaid balance as of February 12. Prepare the entries on Paltrow Co.’s books related to the transactions that occurred on January 10, February 12, and March 10.

Answer and Explanation:

As per the data given in the question,

Entries on Paltrow Co.'s books :

Jan-10   Accounts receivable A/c Dr. $17,500

              To Sales revenue A/c. $17,500

               (Being sales on account is recorded)

Feb-12     Cash A/c Dr. $8,750

               To Accounts receivable A/c. $8,750

               (Being cash receipt on credit sales is recorded)

Mar-10    Accounts receivable A/c Dr. $350

               To interest revenue A/c. $350

                ($17,500 - $8,750 = $8,750 × 4% = 350)

            ( Being due amount with interest is recorded)

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.