Accounting Class:

Each time inventory is sold, two transactions occur: revenues (sales) are recorded, and inventory is used up to become an expense. This means two journal entries are recorded. please answer the four questions below:

1. What key profit factor do you learn from this journal entry?

2. What does recording this transaction tell you about the gross profit on each sale?

3. Does this gross profit indicate overall profitability?

4. is the cost of selling inventory the only expense incurred during routine operations?)