Description: 📘 Transaction Explained: Sold goods for $10,000 (Cost $6,000) — Cash Sale under Perpetual Inventory System Step by Step: Cash (Asset) ↑ → $10,000 Inventory (Asset) ↓ → –$6,000 Cost of Goods Sold (COGS) recorded → $6,000 Profit = Sales – COGS = $4,000 Capital ↑ by $4,000 Modern accounting rules applied: Assets, Income, Expenses, and Capital effects are recorded correctly. Shows how profit impacts the balance sheet and owner’s equity. 💡 Key Learning: Understand how assets change and
Description: 📘 Transaction Explained: Sold goods for $10,000 (Cost $6,0…
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