Barnie's Cafe Started with $4,000 in Inventory and Had the Following

question 75

Multiple Choice

Barnie's Cafe started with $4,000 in Inventory and had the following transaction totals for the month:
Sales $10,000
Sales Returns and Allowances 1,000
Cost of Goods Sold $4,000
Accounts Payable 5,500
Purchases 7,000
Purchases Returns and Allowances 1,000
Purchases Discounts 700
Net purchases for the period are

• A) $4,300.
• B) $6,300.
• C) $5,300.
• D) $5,800.

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Definitions:

Monetarists' Prescription

Recommendations or policies suggested by monetarists, focusing on controlling the money supply to manage economic stability and inflation.

Monetary Rule

The money supply may grow at a specified annual percentage rate, generally about 3–4 percent.

Money Supply

The total quantity of money available in the economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Recessionary Gap

This occurs when equilibrium GDP is less than full-employment GDP.