For the year ended December 31, 2019, Davidson Mart had sales of $ 550 comma 000 and cost of goods sold of $ 412 comma 500. Davidson estimates that approximately 2% of the merchandise sold will be returned. The adjusting journal entry on December 31, 2019, would include a .

Answer and Explanation:

The adjusting entry is as follows

Sales return & allowances ($550,000 × 2%)$11,000  

      Refunds payable$11,000

(Being the recording of  estimated sales return is done)

For recording this we debited the sales returns & allowances as it increased the sales return and credited the refund payable as it also increased the liabilities

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.