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what are the accounting entries which get effected in order
to cash cycle

Answer Posted / anand

1.Sales Order Creation:- NO ENTRY

2. Release of Finished Inventory:-
Finished Goods A/c Dr
To WIP (work in progress) goods A/c


3. Shipping:-
Cost of Goods Sold A/c Dr
To Finished Goods A/c

4. Invoice:-
Customer A/c Dr
To Sales A/c

5. Payment:-
Bank A/c Dr
To customer A/c

Is This Answer Correct ?    7 Yes 1 No



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