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Problem 1: Prepare the journal entries to record these transactions on Sunland Company's books using a periodic inventory system. (If no entry is required, select No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
(a) On March 2, Sunland Company purchased $901,000 of merchandise from Splish Brothers Company, terms 3/10, n/30.
(b) On March 6, Sunland Company returned $101,300 of the merchandise purchased on March 2.
(c) On March 12, Sunland Company paid the balance due to Splish Brothers Company. Purchase Discounts 15,994
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?
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