On June 3, Zhang Co

question 68

Essay

On June 3, Zhang Co. received and recorded a $3,500 invoice for merchandise on which the terms were 2/10, n/60. The company uses the net method to records invoices. On June 17, the company discovered that the invoice had been incorrectly filed and the discount lost. Prepare the June 3 general journal entry to record the purchase, the June 17 entry to record the discount lost, and the August 2 entry to record payment of the invoice.

Identify the conditions under which collusion among firms in an oligopoly is more likely to occur.

Describe the characteristics and consequences of the kinked demand curve in oligopolistic markets.

Recognize the factors that make maintaining a cartel difficult and the incentives for firms to cheat within a cartel.

Analyze the role of economic recessions and other external factors on the stability of cartels and oligopolies.

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Definitions:

Bulbar Conjunctiva

Conjunctiva that covers the surface of the eyeball.

Blink Reflex

An involuntary blinking of the eyelids elicited by stimulation of the cornea or sudden approach of objects, serving as a protective mechanism for the eyes.

Palpebral Fissure

Space between the upper and lower eyelids.

Nasolacrimal Duct

Duct that leads from the lacrimal sac to the nasal cavity.