Since accounting operates with a double entry system, if one account is misstated, then one or more accounts are misstated. Match the account scenario to its logically related other side of the entry.

Recognize Inventory

purchased from a vendor,

on credit.

Recognize Vendor Income

Receivable, due to volume

rebates. Assume that

inventory is costed

appropriately.

Sales or Revenue

Recognize an increase in

Accumulated

Cost of Sales

Depreciation on office

equipment.

Accounts Receivable

Recognize Interest

Payable.

Tax Expense

Recognize Deferred Tax

Other Gains and Losses

Liabilities.

Recognize unrecorded

Accounts Payable

Marketing Liabilities.

Interest Expense

Recognize Liabilities due

to Warranties provided to

customers.

Recognize due to the

passage of time, the

expiration of Prepaid

Expenses for store facility

Retained Earnings

space.

Recognize the Current

Portion of Long$-$term

Debt.

Recognize Administrative

Salaries Payable