chapter 8 - Chapter 7 4 Primary expenditure process...

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Chapter 7 4 Primary expenditure process activities: Determine the need for goods and services Select suppliers and order goods/services Receive goods/services Pay suppliers of goods/services Which of these are accounting events? Receive goods/ services Increase inventory Increase accounts payable Pay suppliers of goods and services Decrease accounts payable Decrease cash Special Journals Recurring, frequent transactions (events) Replaces the general journal for these events, but general journal is still used for less repetitious events. Purchases on account, sales on account, cash receipts, cash payments An entry in the special journal replaces one in the general journal Subsidiary Ledger Used to record details regarding specific general ledger accounts Supports, but does not replace, general ledger by providing details for it. Accounts payable (charges and payments made to specific suppliers), accounts re- ceivable (charges and payments made by specific customers), inventory (increases and decreases to specific inventory items) Merchandising -inventory to be resold -merchandise inventory account
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chapter 8 - Chapter 7 4 Primary expenditure process...

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