1.During the year, you started a business of selling personalized mugs and t-shirts. You opened a separate bank account for the business and deposited your initial investment of P250,000 to this account.

2.The business acquired initial inventory of mugs and t-shirts for a total cost of P50,000. You will record the cost as an asset rather than as expense

3.All the inventory was sold on credit for P30,000. You will immediately record the credit sales as account receivable rather than waiting for them to be collected.

4.Also, you will now record the P50,000 cost of the inventory as expense