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Question - Stuttgart Manufacturing Company requires 10 coupons from its soap powder, Uberschocken, to be redeemed along with $1.25 for a stain remover sprayer. Each box contains one coupon. This year 1,000,000 boxes of soap powder were sold at $5.25 per box, again each containing a coupon. They purchased 75,000 stain sprayers for cash at $2.10 each during the current year. They estimate that 70% of the coupons will be returned from sales this year. Only 600,000 coupons actually were returned in the current year.
a. Record the purchase of the stain sprayers assuming cash was paid
b. Calculate the premium expense for the current year.
c. Record the entire premium expense for the year, both redemption and accrual.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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