Final answer:
The question is related to Business, specifically accounting in a perpetual inventory system. The task involves recording transactions and calculating the merchandise balance and current account balance. An example regarding Singleton Bank's balance sheet helps illustrate the concepts.
Step-by-step explanation:
The subject of the question falls under the category of Business, specifically related to accounting practices in a perpetual inventory system. It deals with recording transactions in a merchandising business environment, keeping track of accounts receivable and accounts payable on separate accounts for different entities, such as the sale that needs to be recorded for the company 'Avert & Wiest'.
The request to calculate the merchandise balance and the current account balance involves analyzing financial transactions to find the balances of goods and services, as well as the flow of income payments. The exercise further extends to an illustrative example provided by the hypothetical Singleton Bank and how it manages deposits, loans, and interest income without actually providing any.
The Work It Out feature described seems to be a guided exercise that would help in understanding the processes involved in computing such financial statements. Additionally, there is a practical application suggested for the student to track their own personal expenditures, which ties into understanding the economic dynamics of consumer spending.