Question

Describe the events that correspond to the following two journals.

Option 1: Inventory and Accounts Payable
Option 2: Accounts Receivable and Sales Revenue
Option 3: Cost of Goods Sold and Inventory
Option 4: Journal Entry Events

Answer 1

The events corresponding to different journals in business transactions are explained.

Step-by-step explanation:

Option 1: The events corresponding to Inventory and Accounts Payable involve tracking and managing the company's inventory and the money owed to suppliers or creditors. For example, when inventory is purchased on credit, it increases both the inventory and accounts payable accounts.

Option 2: Accounts Receivable and Sales Revenue relate to the company's sales and the money owed by customers. When a sale is made, it increases both the accounts receivable and sales revenue accounts.

Option 3: Cost of Goods Sold and Inventory are related to the process of selling inventory. The cost of goods sold represents the expenses incurred to produce the inventory that is sold, and it is deducted from the inventory account.

Option 4: Journal Entry Events refer to the various transactions that are recorded in the journal, such as sales, purchases, and payments. These journal entries provide a chronological record of the company's financial activities.