An airline has two types of passengers: business passengers with fairly tight schedules and inelastic demand for airline flights and vacation passengers with flexible schedules and more elastic demand for airline flights. The tables below show the demand information for both types of passengers and the market demand for a single airline flight.

Business Traveler Demand

Vacation Traveler Demand

Market Demand

Same Price for All Passengers

Price

(dollars)

Quantity

Demanded

(seats)

Marginal

Revenue

(dollars)

Price

(dollars)

Quantity

Demanded

(seats)

Marginal

Revenue

(dollars)

Price

(dollars)

Quantity

Demanded

(seats)

Marginal

Revenue

(dollars)

$500 0 — $500 0 — $500 0 —
450 25 $400 450 0 — 450 25 $400.00
400 50 300 400 0 — 400 50 300.00
350 75 200 350 50 $300 350 125 266.67
300 100 100 300 100 200 300 200 166.67
250 125 0 250 150 100 250 275 66.67
200 150 200 200 0 200 350 16.67
150 175 150 250 150 425
100 200 100 300 100 500
50 225 50 350 50 575
0 250 0 400 0 650
a. If the airline can charge only one price to all passengers and its marginal cost of supplying a seat on a flight is $300, the airline will sell seats and charge a price of $ for each seat.

b. If the airline can charge different prices to the two different types of passengers and its marginal cost of supplying a seat is still $300 per seat, then business travelers will buy seats at a price of $ per seat and vacation travelers will buy seats at a price of $ per seat.

Alpha company uses the periodic inventory system for purchase & sales of merchandise. discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. unless otherwise noted, fob destination will apply to all purchases & sales. the value of inventory is based on periodic system. on january 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. alpha prepares monthly income statements. the following events occurred during the month of jan.: dateactivitya.jan. 3purchased on account 350 widgets for $11 each.b.jan. 5sold on account 400 widgets for $30 each. paid freight out with petty cash of $150.c.jan. 10purchased on account 625 widgets for $12 each.d.jan. 11shipping cost for the january 10 purchased merchandise was $400 was paid with a cheque by alpha directly to the freight company.e.jan. 12returned 50 widgets received from jan. 10 purchase as they were not the correct item ordered.f.jan. 13paid for the purchases made on jan. 3.g.jan. 21sold on account 550 widgets for $30 each. paid freight out with petty cash of $250.h.jan. 22authorize credit without return of goods for 50 widgets sold on jan. 21 when customer advised that they were received in defective condition.i.jan. 25received payment for the sale made on jan. 5.j.jan. 26paid for the purchases made on jan. 10.k.jan. 31received payment for the sale made on jan. 21.use this information to prepare the general journal entries (without explanation) for the january events. if no entry is required then enter the date and write "no entry required."