Indicate which of the following events would result in recognizing expenses for the year in which the described event takes place; give the journal entry. (Take the T-shirt company’s point of view.)

1. T-Shirts Plus, Inc., paid employees $6,000 for work performed during the prior year.

2. T-Shirts Plus, Inc., purchased 15,000 T-shirts for its inventory for $30,000 on account.

3. T-Shirts Plus, Inc., paid the factory cash for the 15,000 shirts purchased.