Recognizing current liabilities, assets, and expenses is crucial for a company's financial statements. Current liabilities represent the company's short-term obligations, while assets encompass the resources owned by the business. Expenses, on the other hand, reflect the costs incurred in generating profit. Recognizing these components is vital as it ensures transparency in financial reporting and aids in decision-making, budgeting, risk management, compliance, and performance evaluation. This week's journal will focus on how to recognize these components, grammar and word usage errors.

Reflection activity:

For this week's learning journal review and prepare any necessary journal entries for the following scenarios:

Scenario:

On July 1st, Wellness Gym obtained inventory from Equip Store Ltd with a value of $20,000, utilizing a credit arrangement. Equip Store Ltd provides a 4% credit allowance if payment is completed within 10 days.
On July 3rd, Wellness Gym returned damaged inventory valued at $5,000.
On July 9th, Wellness Gym made the full payment to Equip Store Ltd.

Record the necessary journal entry in the Record template.
Present the explanation of the transactions recorded for each scenario. Your explanation should include the type of account involved, the reason for debit and credit. The length of your explanation should be between 150 and 200 words

Date Particulars             Debit ($)                     Credit ($)