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Shalnov
1 month ago
15

Assume millerville was producing 30 scooters and 10 helicopters before specialization. if millerville wanted to maintain product

ion of 30 scooters, would they benefit from trade with jamestown if the terms of trade were set such that one scooter is traded for one helicopter?
Business
1 answer:
Katen [3.5K]1 month ago
7 0

Provided the production time and costs are comparable, trade could be beneficial. However, if producing a helicopter is substantially more expensive than a scooter, they would certainly gain from swapping one scooter for one helicopter from Jamestown. This trade would save them both time and money.

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Answer:

Explanation:

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Debiting Accounts Receivable A/c $$887,400

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(Recognizing the sale of inventory at sale price)

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Debiting Sales Return and Allowance A/c  $103,200

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Debiting Merchandise Inventory A/c  $62,500

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Debiting Cash A/c $768,516

Debiting Sales Discounts A/c $15,684

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= Sale of inventory - Returns

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= $784,200

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