Question

Michael's Yoga Studio have been entering bills for their purchases as they come in. They pay multiple bills once a week. They use Bank Feeds to record these transactions, posting to Cost of Goods Sold. They are an accrual-based company. What is best practice to remedy this with a minimum amount of work

Answer 1

By using the purchase journal.

Step-by-step explanation:

A purchase journal is an accounting journal used to keep record of items ordered through the use of account payable. Simply put, a purchase journal is the primary entry book used in recording credit transactions.

A purchases journal is the record of every acquisition made on credit at a particular period. It is a journal used for tracking the requests placed using accounts payable or vendor credit including the current balance indebted each vendor.

A purchase journal has different columns for recording the date, vendor's name, invoice number, invoice date, particulars, vendor's account, credit terms, and total.

Answer 2

Answer: They could either use the Income and expenditure or purchases journal too.

Explanation: Because its a Yoga Studio, lots of expenses will be made and appropriate postings are to be entered on time.