Selected Account Balances from the December 31, 2015, Trial Balance

question 26

Essay

Selected account balances from the December 31, 2015, trial balance of the Gracy Company are listed below: In addition, the following information is available:
· The cost of the ending inventory at December 31, 2015, is $7,500.
· $890 of salaries have accrued as of December 31.
· On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase was debited to Prepaid Insurance.
· On December 1, the company paid 2 months' rent in advance. The $1500 payment was debited to Rent Expense.
· In December, a customer paid $1,000 in advance for merchandise that will be shipped by Gracy in 2016. The amount received was credited to Sales.
· Gracy estimates its bad debts to be 1% of sales after all adjustments).
· The income tax rate is 30%.
Gracy Company uses a periodic inventory system.
Required:
Using a general journal format, prepare the required adjusting entries.

Understand the genetic and neurobiological factors associated with dyslexia.

Comprehend the epidemiology of learning disabilities in the American children population.

Recognize the role of specific brain areas in learning processes and how their dysfunction relates to learning disabilities.

Understand the double deficit hypothesis in relation to dyslexia.

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Definitions:

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share.

Collude

To collude means to come to a secret understanding for a harmful purpose; collaboration typically occurs between firms to set market prices unfairly.

Tacit Collusion

An unspoken, implicit agreement among competitors to not compete aggressively, often leading to higher prices and less competition without explicit communication or agreements.

Price Leadership

A pricing strategy where one leading company sets the price of products or services, and other competitors in the market follow.