One of your friends, who is also a classmate, came to you in the library and asked you the following question:
“I don’t understand why I need to make two journal entries to record the sale of goods. For example, if a company sold goods with a cost of $25,000 for $60,000 cash, why can’t I just record it as follows?
Cash .....................................    60,000
Inventory .............................    25,000
Gross Profit .........................    35,000
This entry reflects what actually happened, so why isn’t it correct?”

Required

Prepare your response.