Read the Description of Following Transactions That Are Required During

question 20

Essay

Read the description of following transactions that are required during the accounting period for Drummond Consulting Services. Determine the account to be debited and the account to be credited.
A. Received a check from a credit customer on account.
B. Accepted a return of merchandise from a credit customer. The original sale involved sales tax.
C. Sold merchandise on credit. The transaction involved sales tax.
D. Gave an allowance to a credit customer for damaged merchandise. The original sale involved sales tax
E. Sold merchandise on credit. The transaction did not involve sales tax.

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Definitions:

Natural Rate

The unemployment rate at which the economy operates when it is at full employment, reflecting the long-term levels of unemployment due to structural factors in the labor market.

Unemployment Rate

A measure representing the percentage of the labor force that is jobless and actively seeking employment.

Inflation Expectations

The rate at which people anticipate prices will increase in the future, which can influence current economic behavior and monetary policy.

Short-run Phillips Curve

A graphical representation showing an inverse relationship between the rate of inflation and the rate of unemployment in the short-term.