Yu Company
Several Sales Transactions and Purchasing Activities for Yu $\quad$

question 44

Essay

Yu Company
Several sales transactions and purchasing activities for Yu Company are described below.Yu Company uses a perpetual inventory system.
A) $\quad$ Yu Company purchased merchandise from Mia Company on credit.
B) $\quad$ YuCompany retuned to Mia Company defective merchandise before payment is made.
C) $\quad$ Yu Company pays for the merchandise purchased from Mia Company.
D) $\quad$ Yu Company sells merchandise to its customers for cash and on credit.
E) $\quad$ Credit customers returned merchandise to Yu Company for a refund.
F) $\quad$ Credit customers pay their account balances to Yu Company. Refer to the information provided for Yu Company.Explain the advantages to Yu Company for using the perpetual inventory system.Assume that Yu Company uses a computer system which is linked to its cash registers and that all products have bar codes that are read by bar code readers attached to the cash registers.

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Definitions:

Trade Deficits

A situation in which a country's imports exceed its exports during a given time period.

Saving Rate

The proportion of disposable income that individuals or households save rather than spend on consumption.

U.S. Economy

The economic system of the United States, characterized by a mixed economy that includes private enterprise alongside limited government involvement.