The following table shows the value of credits and debits in four balance-of-payments accounts in the fictional economy of Pagros. Balance-of-Payments Account | Debits (Billions of dollars) | Credits (Billions of dollars) Merchandise | 70 | 70 Services | 30 | 20 Income Receipts | 20 | 20 Unilateral Transfers | 45 | 20 Total | 165 | 130 Based on the total values of Pagros’s debits and credits, there is money flowing out of Pagros to foreign countries than there is flowing into Pagros. This means that Pagros has a deficit in the account. Complete the following table based on the credits and debits presented in the previous table. Term | How to Calculate | Deficit or Surplus | Size of Deficit or Surplus (Billions of dollars) Current Account Balance | | | Balance of Trade | | |
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The balance of payments (BOP) is a record of all transactions made between entities in one country and the rest of the world over a defined period of time. It includes the trade balance (exports and imports of goods and services), net income from abroad, and net Show more…
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In $2001,$ the United Kingdom's economy exported goods worth $ÂŁ 192$ billion and services worth another $ÂŁ 77$ billion. It imported goods worth $ÂŁ 225$ billion and services worth $ÂŁ 66$ billion. Receipts of income from abroad were $ÂŁ 140$ billion while income payments going abroad were $ÂŁ 131$ billion. Government transfers from the United Kingdom to the rest of the world were $ÂŁ 23$ billion, while various U.K government agencies received payments of $ÂŁ 16$ billion from the rest of the world. a. Calculate the U.K. merchandise trade deficit for 2001. b. Calculate the current account balance for 2001. c. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
In 2001, the United Kingdom's economy exported goods worth $ÂŁ 192$ billion and services worth another E77 billion. It imported goods worth $ÂŁ 225$ billion and services worth $ÂŁ 66$ billion. Receipts of income from abroad were $ÂŁ 140$ billion while income payments going abroad were $ÂŁ 131$ billion. Government transfers from the United Kingdom to the rest of the world were $ÂŁ 23$ billion, while various U.K government agencies received payments of $ÂŁ 16$ billion from the rest of the world. a. Calculate the U.K. merchandise trade deficit for 2001. b. Calculate the current account balance for 2001 . c. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
"The debits and credits for five related transactions (1) through (5), are presented in the following accounts Assume the credit terms were 2/10, n/30, using the net method under perpetual inventory system. Cash Sales 10,290 (1) 1,760 Accounts Receivable Cost of Goods Sold 11,760 1,470 7,000 10,290 Inventory 900 (2) ,000 Estimated Returns Inventory 900 Customer Refunds Payable 1,470 Describe each transaction Sold merchandise on account; net of discount: Recorded the cost of the goods sold and reduced the inventory account: Granted credit against customer' accounts receivable for returned merchandise Updated the inventory account for the cost of the merchandise returned Received the balance due_ What was the invoice amount of the merchandise that was returned?"
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