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Question - On October 2, 2020, Vaughn Company sold $5,720 of its elite camping gear (with a cost of $3,720) to Lynch Outfitters. As part of the sales agreement, Vaughn includes a provision that if Lynch is dissatisfied with the product, Vaughn will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the long-term relationship between Vaughn and Lynch). Vaughn expects total allowances to Lynch to be $770. On October 16, 2020, Vaughn grants an allowance of $390 to Lynch because the color for some of the items delivered was a bit different than what appeared in the catalog.
Indicate the income statement and balance sheet reporting by Vaughn at October 31, 2020, of the information related to the Lynch transaction.
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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Term Structure of Interest Rates
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Simple Interest, Compound interest, discount rate, force of interest, AV, PV
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