Newell Company completed the following transactions in October: 
Instructions
(a) Indicate the cash received for each collection. Show your calculations.
(b) Prepare the journal entry for the
(1) Oct. 17 sale. The merchandise sold had a cost of $3,500.
(2) Oct. 23 sales return. The merchandise returned had a cost of $140.
(3) Oct. 28 collection.
Newell uses a perpetual inventory system.
Definitions:
APC
APC, or Average Propensity to Consume, is the ratio of total consumption to total disposable income, indicating how much income is spent.
Induced Consumption
The portion of consumer spending that changes in response to changes in disposable income.
Disposable Income
The sum of funds that individuals or families can allocate towards savings or expenditure once they've deducted income taxes.
Disposable Income
The liquidity pool available for households to channel into saving and spending after income tax deductions.
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