Reagan recently invested in a 15-year bond with Rocky Mountain Brewers. The bond pays 8 percent interest annually and has a maturity date of 2035. The bonds are callable in 2030. If interest rates go down to 5.5 percent in the year 2030, the brewery is likely to Multiple choice

A. not exercise the call.

B. decrease the interest rate that they are willing to pay the holder.

C. give bondholders a choice of whether they want to turn the bonds back to the brewery.

D. exercise the call.

On june 3, teal company sold to chester company merchandise having a sale price of $2,600 with terms of 2/10, n/60, f.o.b. shipping point. an invoice totaling $91, terms n/30, was received by chester on june 8 from john booth transport service for the freight cost. on june 12, the company received a check for the balance due from chester company. prepare journal entries on the teal company books to record all the events noted above under each of the following bases. (1) sales and receivables are entered at gross selling price. (2) sales and receivables are entered at net of cash discounts.