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10 August, 13:11

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

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  1. 10 August, 13:16
    0
    By using the purchase journal.

    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.
  2. 10 August, 13:19
    0
    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.
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