Understanding Basic Accounting Transactions: Sales, Inventory Write-Downs & Prepaid Expenses Explained

accounting sales transactions inventory write-down prepaid expenses general ledger cost of goods sold accounting principles

For the purpose of completing the assignment, which of the following options describe the correct functions to use when recording the transactions below? 1. We sell goods to customers in cash 2. Based on a physical count at the end of the period, we need to write down inventories 3. We make a payment for a one-year insurance premium, starting next month Group of answer choices

The provided information refers to the工会会计制度, which is not directly applicable to the transactions you've listed, as those transactions are more typical of general business accounting rather than union-specific accounting. However, I can provide the standard accounting functions for these transactions:

We sell goods to customers in cash:
Record the sale: Debit "Cash" or "Bank Account," Credit "Sales Revenue."
Adjust inventory: Debit "Cost of Goods Sold," Credit "Inventory."
Based on a physical count at the end of the period, we need to write down inventories:
Record the write-down: Debit "Inventory Allowance" or "Cost of Goods Sold," Credit "Inventory."
We make a payment for a one-year insurance premium, starting next month:
Record the prepayment: Debit "Prepaid Insurance," Credit "Cash" or "Bank Account."

In the context of the工会会计制度, the transactions would be recorded differently, but since the question pertains to general accounting principles, the above answers apply.

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