42. Review the following journal entry and provide the most likely e ing journal entry and provide the most likely explanation of what is happening to require this journal entry to be recorded: New Purchases In S2,500 Accounts Payable $2,500 A) The company follows the perpetual inventory tracking method and is buying new inventory on account. B) The company follows the periodic inventory tracking method and is buying new inventory on account. C) The company follows the perpetual inventory tracking method and is paying for inventory previously purchased. D) None of the above. 43. Review the following journal entry and provide the most likely explanation of what is happening to require this journal entry to be recorded: Unearned Service Revenue $5,000 Service Revenue $5,000 A) The customer paid in advance so revenue is being recognized under the accrual basis of accounting B) The customer is paying on account in 30 days. C) This is an adjusting journal entry to recognize revenue that has been earned in the reporting period. D) Customer is returning merchandise and the sale is being reversed / voided