Read Each of the Following Transactions

question 45

Essay

Read each of the following transactions. Determine the accounts to be debited and credited. The company uses the Periodic Inventory method
A)Purchased merchandise for $950 in cash.
B)Issued a check for $752 to remit sales tax to the state sales tax authority.
C)Issued a check for $1,894 to purchase supplies.

• A)Purchased merchandise for $950 in cash.
• B)Issued a check for $752 to remit sales tax to the state sales tax authority.
• C)Issued a check for $1,894 to purchase supplies.

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Definitions:

Marginal Social Benefit

The additional benefit to society as a whole from the consumption of one more unit of a good or service.

Marginal Social Cost

The additional cost incurred by society as a whole due to producing one more unit of a good or service.

Pollution

The contamination of the natural environment, leading to adverse effects on ecosystems and human health.

Marginal Social Cost

The extra expense society incurs from the production of an additional unit of a good or service.