The language of price controls Consider the market for donuts. Suppose that, in a competitive market without government regulations, the equilibrium price of donuts is $1.50 eac and employees at donut shops earn $15.50 per hour Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market
Statement Price Control Effect
There are many teenagers who would like to work at donut shops, but the minimum-wage law sets the hourly wage at $18.00
The government prohibits donut shops from selling donuts for more than $1.80 each.
The government has instituted a legal minimum price of $1.80 each for donuts.

3 Purchased merchandise on account from Moonlight Co., list price $93,000, trade discount 25%, terms FOB destination, 2/10, n/30.

4 Sold merchandise for cash, $34,100. The cost of the merchandise sold was $22,080.

5 Purchased merchandise on account from Papoose Creek Co., $43,650, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 added to the invoice.

6 Returned $15,000 ($20,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.

8 Sold merchandise on account to Quinn Co., $15,270 with terms n/15. The cost of the merchandise sold was $8,940.

13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.

14 Sold merchandise on VISA, $229,890. The cost of the merchandise sold was $153,500.

15 Paid Papoose Creek Co. on account for purchase of November 5.

23 Received cash on account from sale of November 8 to Quinn Co.

24 Sold merchandise on account to Rabel Co., $51,300, terms 1/10, n/30. The cost of the merchandise sold was $33,280.

28 Paid VISA service fee of $3,410.

30 Paid Quinn Co. a cash refund of $1,800 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise.

Required:

Journalize the transactions.

Explanation:

3 Purchased merchandise on account from Moonlight Co., list price $93,000, trade discount 25%, terms FOB destination, 2/10, n/30.

4 Sold merchandise for cash, $34,100. The cost of the merchandise sold was $22,080.

5 Purchased merchandise on account from Papoose Creek Co., $43,650, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 added to the invoice.

6 Returned $15,000 ($20,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.

8 Sold merchandise on account to Quinn Co., $15,270 with terms n/15. The cost of the merchandise sold was $8,940.

13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.

14 Sold merchandise on VISA, $229,890. The cost of the merchandise sold was $153,500.

15 Paid Papoose Creek Co. on account for purchase of November 5.

23 Received cash on account from sale of November 8 to Quinn Co.

24 Sold merchandise on account to Rabel Co., $51,300, terms 1/10, n/30. The cost of the merchandise sold was $33,280.

28 Paid VISA service fee of $3,410.

30 Paid Quinn Co. a cash refund of $1,800 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise.

Required:

Journalize the transactions.