Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. each time inventory is sold, two transactions occu

Each time inventory is sold, two transactions occur: revenues (sales) are recorded, and inventory is...

50.1K

Verified Solution

Question

Accounting

Each time inventory is sold, two transactions occur: revenues (sales) are recorded, and inventory is used up to become an expense. This means two journal entries are recorded:

DR Cash (or accounts receivable if on account) CR Sales (to record sales revenues earned)

DR Cost of Goods Sold CR Inventory (To record inventory becoming the expense of the sale)

Consider the impact of recording these transactions. What key profit factor do you learn from this journal entry? This is a conceptual question. You are not required to write out this entry with any numbers.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Years since 1985 1 3 6 8 9 Books sold (thousands) 4.3 6.1 10.7 12.1 13.5 I need to know the inflection and to be able to...

Psychology
1.2K views

                                Chapter 1 of the Communist Manifesto                                                          by Karl Marx Please type out answers to the following questions: For...

Physics
1.2K views

A 0.0147-kg bullet is fired straight up at a falling wooden block that has a mass...

Basic Math
1.2K views

Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a...

Advance Math
1.2K views

Theorem: Let K/F be a field extension and let a ? K be algebraic over F....

Physics
1.2K views

An electric dipole of moment is at the origin 0 0 0 The electric field...

Physics
1.2K views

The maximum and minimum magnitudes of resultant of two vectors are 12 units and 6...

Statistics
1.2K views

A Sebastian city official would like to estimate the average monthly rent of all rental...

Accounting
1.2K views

Schedule of Activity Costs \table[[Quality Control Activities,Activity Cost],[Process audits,$50,000

Accounting
1.2K views

Questions, Classroom Demonstration Exercises, Exercises, and ... 5-3A. As the bookkeeper of Pete's Plowing of...

Accounting
1.2K views

The records at the end of January of the current year for Young Company showed...

Accounting
1.2K views

QS 20-19 (Algo) Schedule of cash receipts LO P2 Music World reports the following budgeted...