Record journal entries for the following transactions of Furniture Warehouse.
July 5: Purchased 30 couches at a cost of $150 each from a manufacturer. Credit terms are 2/15, n/30, invoice date July 5.
July 10: Furniture Warehouse returned 5 couches for a full refund.
July 15: Furniture Warehouse found 6 defective couches, but kept the merchandise for an allowance of $500.
July 20: Furniture Warehouse paid their account in full with cash.

Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent.a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?