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Unger Company uses the perpetual inventory method. Unger sold goods that cost $3,500 for $7,200. If the sale was made to a customer on account, the sale will:
a) increase total assets by $7,200.
b) increase total liabilities by $3,500.
c) increase total assets by $3,700.
d) increase total liabilities by $7,200.
Management has decided to get a detailed report based on an intensive investigation of the financial position of the sales department, production department and development and research department.
In 2003, Roland, who is single, purchased a personal residence for $340,000 and took out a mortgage of $200,000 on the property. In May of the current year, when the residence had a fair market value of $440,000 and Roland owed $140,000 on the mor..
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