Recording Transactions: When will Domino Corporation Record a Transaction?

Question:

On which of the following dates will Domino Corporation record a transaction?

Answer:

Domino Corporation will record transactions on three different dates: February 15, February 27, and the date when the inventory was ordered.

Domino Corporation, known for its delicious pizzas, deals with ordering inventory to keep up with the demand for their mouth-watering dishes. When will the company actually record these transactions?

Firstly, on February 15, Domino will record the transaction for receiving the inventory on account. This action will increase the inventory account while also increasing the accounts payable account. This step is crucial in keeping track of the amount of inventory available for their delicious pizzas.

Secondly, on February 27, Domino will record the transaction for paying for the inventory. This will result in decreasing the accounts payable account as the outstanding payment is settled. At the same time, the cash account will also decrease as the payment is made to the supplier.

It is important for Domino Corporation to keep an accurate record of these transactions on these specific dates to ensure that their financial statements are in order and to maintain transparency in their business operations.