Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah’s Cycles on February 1 for $1,200 (cost of goods sold of $700). On February 9, Sarah’s Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $190). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale. Required: 1. to 3. Prepare the journal entry to record the sales, Goods returned on February 9 and Cash collected on March 2. 4. Calculate the gross profit percentage for the sale to Sarah’s Cycles.

Answers

Answer 1

Answer: Please find explanation column for answers

Explanation:

a)Journal  To record sales of merchandise

Date                 Accounts titles                Debit      Credit

Feb 1    Account receivable            1200  

Sales revenue                                               1200

Journal To record cost of goods sold

Cost of goods sold                            700  

Merchandise inventory                                          700

b)Journal To record sales return  

Date                 Accounts titles                          Debit      Credit

Feb 9 Sales return and allowance (1200/4) 300  

Account receivable                                                     300

To record cost of goods returned

Merchandise inventory                                           $190  

Cost of goods sold                                                               $190

c)Journal To record  cash collection  

Mar 2 Cash (1200 -300)                               $900

Account receivable                                                        $900

d) Gross Profit percentage  = Net Profit/Net sales =Net sales - cost oof goods sold/net sales

Cost of goods sold = cost of goods sold - cost of goods retuened = 700- 190 = 510

Net profit/ net sales = 900- 510/ 900=490/900= 0.54 = 54%


Related Questions

Bond P is a premium bond with a coupon rate of 9 percent. Bond D has a coupon rate of 5 percent and is currently selling at a discount. Both bonds make annual payments, have a YTM of 7 percent, and have 10 years to maturity.


a. What is the current yield for Bond P and Bond D? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b. If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond D?

Answers

Answer and Explanation:

The computation of the current yield for the bond P and bond D also the expected yield with related to the capital gain for the bond P and bond D should be shown in the attachment without changing the rate of interest. There are two attachments one is of final values and the other ones is of the formulas used


Mention any there objectives of Accounting​

Answers

Answer:

objectives of accounting in any business are:-

systematically record transactions sort and analysing them, prepare financial statements position, and aid in decision making with financial data and information about the business.

hope it is helpful....

What are the possible problems for readers when companies market their goods on social media? How do social media companies make money? Can individuals keep their information private from marketers when they use social media?

Answers

Answer:

I want to know to

Explanation:

A market conditions featuring many producers selling the same good is called __?

Answers

Answer:

A  perfect competition market structure

Explanation:

A  perfect competition market structure has many suppliers selling a homogeneous or identical product. There are no dominant sellers, meaning no supplier can influence the price. All sellers are competing against each other.

The other features of a perfect competition market structure include

There is freedom of entry and exit from the market, i.e., trade barriers do not exist.There are very many buyers.Suppliers sell identical goods.Sellers have a motive to maximize profits.Buyers are sufficient information about the market.

Answer

pure competition

Explanation

multiple choice test 2.3.4: Market Structures

Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions. How to Conquer the First Impression What does this article say about being on time?

Answers

Punctuality is the key to develop a good first impression.

Whether attending a meeting or an interview if the person is on time this makes a good impression indicating that a person is punctual and strict to time. Such a person will value time and consider the priority tasks to be done on time that can be consider good for the organization.Therefore, time management can develop a positive first impression.

Learn more about time:

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Explain two benefits to Walmart of setting up a joint venture to enter the Indian market

Answers

Answer:

Walmart will get more money. It will also expand their brand.

Explanation:

^

Protecting intellectual property rights is important to a free enterprise system because:
A. it gives the government the ability to regulate businesses.
B. it allows entrepreneurs to profit from their ideas.
C. it ensures that businesses sell products at fair prices.
D. it makes more money available for starting new companies

Answers

Answer:

B. it allows entrepreneurs to profit from their ideas.

Explanation:

Intellectual properties are valuable ideas, innovations, and creations to a business. They are intangible assets that give a business its competitive advantage. Protecting intellectual properties ensure an individual or entity reaps the full benefits of the inventions and creations.

Protecting intellectual properties safeguards a company's ideas from being exploited by its competitors for commercial gains. It gives a business the right to exclusively profits from its innovations. Protecting intellectual properties encourages research and development as entrepreneurs are guaranteed to benefit from their creations.

E6-14 Analyzing and Recording Sales and Gross Profit with Sales Returns [LO 6-4, LO 6-6] Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah’s Cycles on February 1 for $700 (cost of goods sold of $450). On February 9, Sarah’s Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $110). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale. Required: 1. to 3. Prepare the journal entry to record the sales, Goods returned on February 9 and Cash collected on March 2. 4. Calculate the gross profit percentage for the sale to Sarah’s Cycles. g

Answers

Answer and Explanation:

The journal entries are shown below:

Accounts Receivable $700

          To Sales Revenue $700

(Being the sales revenue is recorded)

Cost of Goods Sold $450

        To Inventory $450

(being the cost of goods sold is recorded)

Sales Revenue $175 ($700 × 1 ÷ 4)

            To Accounts Receivable $175

(Being return inventory is recorded)

Inventory $110

   To Cost of Goods Sold $110

(Being return inventory is recorded)

Cash $525

       To Accounts Receivable $525

(being cash received)

Now the gross profit percentage is

Gross Profit Percentage 35.23%

= (Gross Profit ÷ Net Income)  

= ($700 - $175 - $450 + 110) ÷ ($700 - $175)

= 35.23%

Purchased merchandise on account from moonlight co., list price $85,000, trade discount 25%, terms fob destination, 2/10, n/30. 4 sold merchandise for cash, $37,680. the cost of the goods sold was $22,600. 5 purchased merchandise on account from papoose creek co., $47,500, terms fob shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice. 6 returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on november 3 from moonlight co. 8 sold merchandise on account to quinn co., $15,600 with terms n/15. the cost of the goods sold was $9,400.

Answers

Hi, your question is incomplete however,  i have searched for the full question and it reads as follows :

The following were selected from among the transactions completed by Babcock Company during November of the current year:

Nov. 3 Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.

4 Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.

5 Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.

6 Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.

8 Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the merchandise sold was $9,400.

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

14 Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.

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. 6,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.

28 Paid VISA service fee of $3,540.

30 Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300.

Journalize the entries to record the transactions of Babcock Company for November using the periodic inventory system.

Answer:

Nov 3

Merchandise $21,250 (debit)

Trade Payable : Moonlight Co. $21,250 (credit)

Nov 4

Cash $37,680 (debit)

Cost of Goods Sold $22,600 (debit)

Sales Revenue $37,680 (credit)

Merchandise $22,600 (credit)

Nov 5

Merchandise $47,500 (debit)

Trade Payable : Papoose Creek Co $47,500 (credit)

Nov 6

Trade Payable : Moonlight Co. $13,500 (debit)

Merchandise $13,500 (credit)

Nov 8

Accounts Receivable : Quinn Co. $15,600 (debit)

Cost of Goods Sold $9,400 (debit)

Sales Revenue $15,600 (credit)

Merchandise $9,400 (credit)

Nov 13

Trade Payable : Moonlight Co. $7,750 (debit)

Discount allowed $155 (credit)

Cash $7,620 (credit)

Nov 14

Cash $236,000 (debit)

Cost of Goods Sold $140,000 (debit)

Sales Revenue $236,000 (credit)

Merchandise $140,000 (credit)

Nov 15

Trade Payable : Papoose Creek Co $47,500 (debit

Discount Allowed $950 (credit)

Cash $46,550 (credit)

Nov 23

Cash $15,600 (debit)

Accounts Receivable : Quinn Co. $15,600 (credit)

Nov 24

Accounts Receivable : Rabel Co.. $56,900 (debit)

Cost of Goods Sold $34,000 (debit)

Sales Revenue $56,900 (credit)

Merchandise $34,000 (credit)

Nov 28

Visa Service Fee $3,540 (debit)

Cash $3,540 (credit)

Nov 3

Sales Revenue $6,000 (debit)

Merchandise  $3,300 (debit)

Accounts Receivable : Quinn Co.  $3,300 (credit)

Cost of Goods Sold $9,400 (credit)

Explanation:

Please Be very careful :

-to exclude trade discount

-to to use perpetual inventory method

- to check if payment falls within the cash discount period

- include freight charges in invoice amount for FOB purchases

See the journal prepared above.

Your dad bought a house for you 10 years ago. He took out a $200,000 mortgage then. The mortgage has a 15-year term with monthly payments and has an APR of 8.00%. He paid monthly mortgage for 10 years or 120 months. On October 1, 2019, you became the owner of the house and started to be responsible for the rest of the mortgage payments. (Hint: If you continue with the mortgage, you will pay the monthly payment for another 60 months with the first payment due on November 1, 2019.) You are thinking about refinancing the mortgage. On October 1, 2019, how much is the balance of this mortgage?

Answers

Answer:

The answer is "$1064.90".

Explanation:

Mortgage balance after 10 years  Only at end of the 10th year, we must first calculate the amount of credit outstanding.

[tex]\to PV= \$ \ 200,000\\\\\to N= 15 \times 12 = 180\\\\\to M= 10 \times 12 = 120\\\\\to R= \frac{8 \%}{12} = 0.006667\\\\[/tex]

Amount repaid = [tex]PV \times \frac{(1+r)^m -1}{(1+r)^n -1}[/tex]

                         [tex]= \frac{200,000 \times ((1+ 0.0066667)^{120} -1)}{(1+0.0066667)^{180} -1}\\\\= \frac{200,000 \times 1.219649054}{2.3069411}\\\\ = 105,737.34[/tex]

Amount of outstanding [tex]= 200,000 - 105,737.34[/tex]

                                       [tex]= 94262.66[/tex]

The balance of mortgage = $94262.66

Refinancing :

[tex]\to N= 10 \times 12 = 120\\\\\to R= \frac{1.50 \%}{12} = 0.00125\\\\\to PV = 94262.66[/tex]

[tex]pmt= \frac{PV \times r}{1-(1+r)^{-n}}\\[/tex]

       [tex]=\frac{94262.66 \times 0.00125}{1-(1+0.00125)^{-120}}\\\\=\frac{117.828325}{0.1392114}\\\\=846.40[/tex]

The monthly payment = 846.40

[tex]\text{Monthly savings = earlier monthly payment - current monthly payment}[/tex]

                          [tex]= 1911.30-846.40 \\\\= \$ \ 1064.90[/tex]

What are blueprints?
OA.
Plans for buildings, machines or other items.
OB.
Computer programs.
O C. Laboratory equipment.
OD.
Instructions for employees.
Rese

Answers

answer:oa.

Explanation:

its just oa its the definition

Answer:

A. plans for buildings, machines, or other items

Explanation:

Blueprint

A complete plan that explains how to do or develop something.

<3 Enjoy,

    Dea

what is the importance of opportunity cost to the governmentk​

Answers

Answer:

Opportunity cost is important to economic agents, such as consumers, producers and governments. For example, producers might have to choose between hiring extra staff and investing in a new machine. The government might have to choose between spending more on the NHS and spending more on education.

according to the video what are some quality's petroleum engineers need? check all that apply.​

Answers

Hello! Your answer is shown below,

Petroleum engineers should have natural abilities to make them successful. Personal attributes include strong mathematics and analytical skills to design equipment and solve problems in drilling.

Hope this helps!

Answer:

The answer is

A) willingness to travel

E) problem-solving skills

F) patience

Explanation:

1. You are enployed as a sales associate in a clothing store that has a frequent shopper
reward program For example, for every $100 spent, customers eam 10 points. When
they reach 1000 points they eam a $10 reward certificate. A friend who is not registered
in the frequent shopper reward program wants you to accept a $25 off certificate as
payment for a shirt. The prograny's guidelines state that points are not transferable and
they can only be used by a member. What will you do?

Answers

Answer:

dwddddd

Explanation:

Here's the revenue and expenses for the month. Calculate whether Mia had a profit or loss.
MAY ACCOUNTS
REVENUE
FIXED EXPENSES
VARIABLE EXPENSES
CARD PURCHASE $300
DOG FOOD
CAT FOOD
PET TREATS
PET SUPPLIES
$3,650
$2,850
$1,650
$1,800
RENT
$2,000
SALARIES
$2,000
UTILITIES
$1,000
PRODUCT STOCK $4,000
TOTAL
$9,950
TOTAL
$9,000
TOTAL
$300
ENTER MIA'S TOTAL PROFIT/LOSS FOR THE MONTH IN THE BOX BELOW, THEN CLICK SUBMIT.
$1 X
SUBMIT

Answers

Answer:none

Explanation:

Answer:

Explanation: The answer is 650

When you seek to define an issue, you should try to frame it in positive terms. T or F

Answers

Answer:

True

Explanation:

When you seek to define an issue, you should try to frame it in positive terms. The given statement is True.

What is the framing message?

Without changing the justifications or characteristics of the highlighted goods, message framing involves organizing and structuring a message. Although though both framing techniques use the same objective information, Rucker and his coauthors discovered that if the same message is framed in two distinct ways, its persuasiveness might change.

A problem or issue can be presented or structured by using a framing technique. In order to elicit the most support from your audience, framing entails identifying and clarifying the background of the issue. Framing depends on your audience. Always consider your assumptions before making a decision. Try to frame an issue in a favorable light when attempting to define it.

Thus, the mentioned above-given statement is True.

Learn more about the framing message here:

https://brainly.com/question/14299431

#SPJ6

Jenny can paint one birdhouse in 2 hours and can build one birdhouse in 1 hour. Gary can paint one birdhouse in 3 hours
and can build one birdhouse in 2 hours. Who has the comparative advantage in painting a birdhouse?
a
b
оооо
A. Gary
B. Jenny
C. Their comparative advantage is the same
D. Neither has a comparative advantage

Answers

Answer:

Jenny

Explanation: This is an easy comparative answer Jenny takes 2 hours for 1 birdhouse, and Gary takes three J2>3G

Advantages and disadvantage of workers on a strike

Answers

Answer:

ADVANTAGES: Potential for better pay and working conditions for the workers

DISADVANTAGES: The employer could potentially punish the workers, restrict their pay, or even fire them. The company the workers work for will lose money. Strikes can take long periods of time.

Why do you think it is so important for a résumé to be free of any grammar and spelling errors?

Answers

Answer:

A reasonably competent person would make sure everything was correct. That person would want to display care, diligence and attention to detail by using correctly spelled words and proper grammar. These are all valuable traits that employers look for in an employee.

Explanation:

Answer:

It is important that your resume doesn't have grammar and spelling errors because you interviewer will see if you are a competent person and they will see that you have what it takes to do that job

Explanation:

Hope this helps

What is the difference between a marketing strategy and a marketing plan?

A. A marketing strategy tells where a business wants to go and the marketing plan tells how to get there.

B. There is no difference between a marketing strategy and a marketing plan.

C. A marketing strategy is rather flexible, but a marketing plan should not be revised once it has been created.

D. A marketing plan is written first and forms the basis of the marketing strategy.

Answers

Answer:

a

Explanation:

Infinity times Infinity

Answers

Answer:

I think its just infinity

Answer:

Infinity

Explanation:

WILL GIVE BRAINLIEST TO FIRST CORRECT ANSWER!
Sandra deposits $3,000 at the end of each semiannual period for 12 years at 10% interest compounded semiannually. Determine the amount she will have in the account after 12 years. Round to the nearest cent.
a. $133,506.00
b. $140,181.30
c. $121,291.43
d. $70,568.14

Answers

Answer:

b

Explanation:

$140,181.30

Answer: its A

Explanation:

$133,506.00

This graph compares the cost of an education at different institutions in Texas.

A graph titled The Cost of Tuition in Texas from 2012 to 2013 has type of school on the x-axis, and yearly cost in thousands of dollars on the y-axis. Public 4-year university is about 7,000, and private 4-year is 23,000. Public community college is 2,000, and private community college is 9,000. Technical school is 4,000.

This graph demonstrates that

private universities can cost three times as much to attend as public universities.
public universities can cost three times as much to attend as private universities.
community colleges can cost five times as much to attend as technical schools.
technical schools can cost five times as much to attend as community colleges.

Answers

Answer:

private universities can cost three times as much to attend as public universities.

Explanation:

Private universities are more expensive to attend compared to public universities. As per the graph, the public university is cost 7,000 while private university costs 23,000 to attend.  It is then correct to say that private universities cost more than three times as public universities ( 23,000/7,000= 3.29).

Community college costs 9000, while technical schools cost 4000; the cost is not five times more.

Technical schools 4,000 and community colleges are 9000; the costs are only two and a half more.

The graph is a pictorial representation of the data given.

The graph shows the relationship between two quantities whether it is linear or inversely proportional etc.

The given graph depicts that:

Private universities can cost three times as much to attend as public universities.

The given data tells that

                                         Costs

                                a)Public                 b)  Private

University                7000                        23000

College                    2000                        9000

Dividing b by a gives

23000/7000=3.286

9000/200= 4.5

Choice b public universities can cost three times as much to attend as private universities is incorrect.

Choice c community colleges can cost five times as much to attend as technical schools  is also incorrect.

Choice d technical schools can cost five times as much to attend as community colleges is incorrect as well.

The best answer from the given choices is option a: private universities can cost three times as much to attend as public universities.

Reading graph can be understood from the following links.

https://brainly.com/question/9370858

https://brainly.com/question/7040405

1) Based on the video, which type of
departmentalization is used by the parent company
of MyGym?
a
Geography
b
Functional
с
Product
d
Process
Customer
e

Answers

Answer:

d customer

Explanation:

because people buy memberships to the gym

hope it helps

(02.01 LC)

Match each term with its description.

Match Term Definition
Demand A) Amount of money left over after the business pays its expenses.
Price B) The production, purchase, and sale of goods in a world.
Profit C) The amount paid for goods or services.
Competition D) The number of goods and services that consumers want to buy.
Global economy E) Rivalry in supplying or acquiring an economic service or good.

Answers

Answer:

See below

Explanation:

Demand A): The number of goods and services that consumers want to buy. Demand is computed in relation to a specified price per period.

Price B): The amount paid for goods or services. In most cases, price is the monetary value attached to an item.

Profit C): Amount of money left over after the business pays its expenses. Profits are achieved when revenues or income are more than the costs.

Competition D): Rivalry in supplying or acquiring an economic service or good. Businesses compete to gain customers, a bigger market share, and more profits.

Global economy E) The production, purchase, and sale of goods in a world. Technological and infrastructure development has made trading in the world much easier and faster.

Which term refers to the first level of a product, which depends on the customer value it generates?
A.
augmented product
B.
core benefit
C.
expected product
D.
basic product

Answers

Answer:

B. core benefit

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

According to the economist Philip Kotler in his book titled "Marketing management" he stated that, there are five (5) levels of a product. This includes;

1. Core benefit.

2. Generic product.

3. Expected product.

4. Augmented product.

5. Potential product.

The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.

Hence, the term that refers to the first level of a product, which depends on the customer value it generates is generally referred to as a core benefit. For example, a hotel provides a comfortable and convenient bed to spend the night (sleep) when you travel for a vacation.

You are an adviser to the CEO of Papa John’s Pizza, who is looking to make some dough by expanding into one of the BRIC economies. He favors China over India, but worries about the presence of "institutional voids" that could make it difficult to operate profitably. Do you think his concerns are warranted

Answers

Answer:

The CEO is mistaken, since the greatest concerns regarding operating in China are not institutional voids, since the Chinese owns and operates the 4 largest banks in the world, e.g. hundreds of millions of people use credit or debit cards in a daily basis, Wiebo (China's largest social media app) has 500 million users, China is the largest cell phone and app market in the world, etc.

The problem with China is that in order to operate there, you must be willing to obey the government at all times, and comply with everything that they say regardless of what they ask for. Recently some laws in China have changed a little in order to favor foreign investment because a lot of companies were not comfortable having the Chinese government as their partners. Before, if you wanted to do business in China, you had to form some type of joint venture with the Chinese government.

The problem is that China is an authoritarian state, and even though it loosen its grip on private businesses, it still has a lot of control over them. Remember how Google had to accept censorship in order to operate there? The same applies to all companies that do business there, e.g. GM, Ford, Yum, McDonald's, etc.

If companies do not do what Chinese officials say, and not necessarily because a law allows them to, they do not operate there. A few weeks ago, one of the richest Chinese businessman was sentenced to 18 years of jail for protesting against the government. So you either do what the government says, or you rot in jail. The judicial system is an operating branch of the government there, it is not an independent branch like in the US.

Sheridan Company took a physical inventory on December 31 and determined that goods costing $225,000 were on hand. Not included in the physical count were $24,200 of goods purchased from Pelzer Corporation, FOB shipping point, and $21,200 of goods sold to Alvarez Company for $29,200, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end.

Answers

Answer:

$270,400

Explanation:

FOB shipping point: (transfer of risk and reward takes place when the goods are shipped for transfer.

The purchased inventory that was not included are under FOB shipping point, which means that the risks and rewards associated with the inventory has been transferred at the year end. Hence the ownership has been shifted. This means the purchase must be included in the inventory.

FOB destination: The transfer of ownership takes place once the other party receives the order.

As the sold inventory are under FOB destination, which means that the risks and rewards assoiciated with the inventory are not yet transferred. Hence the ownership has not been shifted. This means the sold inventory must be included in the inventory.

Calculation:

Goods on Hand                                             $225,000

Goods Purchased FOB Shipping Point         $24,200

Goods Sold on FOB Destination                  $21,200  

Goods on Hand on December 31                 $270,400

This document shows that you are allowed to work in the United States:
a. cover letter
b. résumé
c. job application
d. work permit

Answers

Answer:

d. work permit

Explanation:

The work permit is also referred to as the Employment Authorization Document or EAD. A work permit has the same design as a driver's license. It is issued by US Citizenship and Immigration Services (USCIS).

Foreigners coming into the US need to obtain a work permit to enable them to seek employment. The work permit card is presented to potential employers as proof that a person is duly authorized to work in the USA.

Answer:

D. Work permit

Explanation:

Did the quiz

Which situation most directly illustrates a possible outcome of a fiscal
policy?
A. New environmental regulations make drinking water in a city safer.
B. The government decides it is time to print a great deal of new
money
O C. Struggling farmers receive less assistance from the government.
O D. A company decides to expand its operations into several new
states

Answers

Answer:

C

Explanation:

The correct answer would be option C that says that the struggling farmers receive less assistance from the government as fiscal policies are associated with determining the expenses and taxation policies to the various sectors to regulate the direction of the economy.

There are two types of Fiscal Policy that are Expansionary and Contractionary.

Expansionary fiscal policy:

deals with an increase in spending and/ or relaxing in taxation by the government so that consumers in the economy get more money.

Contractionary policy:

deals with reducing spending and/ or increasing taxation.

In this case, farmers did not get assistance from the government due to reducing the amount of Federal money available for farming and farmers is an illustration of Contractionary fiscal policy.

Learn more about Fiscal policy:

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