Ms. Black started her own gardening business a year ago. She knows you are taking an accounting course so you get into a conversation about the details of accounting for transactions. She tells you that because her business is so small she doesn't use a journal but just posts directly to the general ledger. She goes on to say that she doesn't bother with revenue and expense accounts but just records these items in the retained earnings account because that is where they really belong anyway.

Instructions

Comment on Holly's method of recording information. Include in your response the reasons for, and benefits of, using journals and revenue and expense accounts.

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