Distinguish between a journal and a ledger


Response to the following questions:

1. How does understanding the mechanics of accounting help a businessperson who has no intention of practicing accounting?

2. Distinguish between a journal and a ledger.

3. Assume that Company A buys $1,500 of merchandise from Company B for cash. The merchandise originally cost Company B $1,000. What entries should the buyer and seller make, and what is the relationship of the accounts for this transaction?

 

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Accounting Basics: Distinguish between a journal and a ledger
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