Assuming the Use of Special Journals, the Sale of Merchandise

question 71

Multiple Choice

Assuming the use of special journals, the sale of merchandise to Landon Browning for cash would be recorded in the:

• A)cash receipts journal.
• B)cash payments journal.
• C)general journal.
• D)sales journal.

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Definitions:

Import Quota

A government-imposed limit on the quantity or value of a particular good that can be imported into a country.

Equilibrium Price

The price at which the market is in equilibrium, that is, the quantity of a good or service demanded equals the quantity of that good or service supplied; also referred to as the market-clearing price.

Import Quota

A government-imposed limit on the quantity of a certain good that can be imported into a country, used to protect domestic producers.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability.