Shapiro Book Company sells a book that cost $50 for $75 cash. The accountant prepares a journal

Question:

Shapiro Book Company sells a book that cost $50 for $75 cash. The accountant prepares a journal entry with a debit to Cash for $75, a credit to Inventory for $50, and a credit to Gross Profit for $25. What part of this is incorrect and why is it important to use the correct accounts? The company uses a perpetual inventory system.