Nov. 1 dollar store purchases merchandise for $1,600 on terms of 2/5, n/30, fob shipping point, invoice dated november 1. 5 dollar store pays cash for the november 1 purchase. 7 dollar store discovers and returns $100 of defective merchandise purchased on november 1, and paid for on november 5, for a cash refund. 10 dollar store pays $80 cash for transportation costs for the november 1 purchase. 13 dollar store sells merchandise for $1,728 with terms n/30. the cost of the merchandise is $864. 16 merchandise is returned to the dollar store from the november 13 transaction. the returned items are priced at $200 and cost $100; the items were not damaged and were returned to inventory. journalize the above merchandising transactions for the dollar store assuming it uses a perpetual inventory system and the gross method.

NOV 1

Inventory 1,600

Account Payable 1,600

Nov 5

Account Payable 1,600

Discount received  32

Cash 1,568

Nov 7

Cash 100

Inventory 100

Nov 10

Freight In 80

Cash 80

Nov 13

Account receivable 1,728

Sales Revenues 1,728

Nov 13

COGS 864

Inventory 864

Nov 16

Sales Revenue 200

Account receivable 200

Nov 16

Inventory 100

COGS 100

Explanation:

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.