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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

“How good are you at preparing for and reaching for an interview? How do you think...

Operations Management
Q

Assisted reproductive technology, such as egg donation and in-vitro fertilization, has made the news. Describe one...

Medical Sciences
Q

Neptune is the eighth and farthest planet from the Sun in the Solar System It...

Biology
Q

A positron with kinetic energy 1 MeV and an electron with kinetic energy 1MeV meet...

Physics
Q

K Use the given xy pairs to complete parts a through d a Identify the...

Basic Math
Q

2 Jypu un muyor ora B xx Type an integer or a simplified fraction C...

Calculus
Q

Emerton Corporation alquila el edificio de su sede corporativa. Este costo de arrendamiento es fijo...

Accounting
Q

Olive Corporation currently makes 12,900 subcomponents a year in one of its factories. The unit...

Accounting
Q

At the end of Year 1, Lane Co. held trading securities that cost $86,000 and...

Accounting
Q

Current Attempt in Progress Cullumber Appliance Co. manufactures low-price, no-frills appliances that are in great...

Accounting
Q

On June 30,2018 , Juan Dela Cruz passed away. The following unpaid taxes relate to...

Accounting
Q

QUESTION 1 Dividend payments are categorized as: cash flow from operating activities. cash flow from...

Accounting