Question: TRANSACTION: Jane buy initial inventory. Next, Jane buys her initial inventory: 1 5 bags of candy for $ 1 per bag. This reduces her cash

TRANSACTION: Jane buy initial inventory.
Next, Jane buys her initial inventory: 15 bags of candy for $1 per bag. This reduces her cash to $5. The value of her inventory (i.e., what she paid for it) is recorded as an asset of $15. The transaction does not affect her liabilities or owner's equity.

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