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Question - You are the owner of a small retail store that sells electronics such as smartphones, tables, and peripherals. Your business currently has just a few vendors and most of your purchases are transacted on credit. Sales are primarily in cash. Your goal is to grow your small business and to achieve this goal, your supplier base will increase significantly in order to meet the demand you expect. Most sales will continue to be in cash. However, you have been approached by local companies that wish to purchase products from your business on credit. Presently, you record all transactions in the general journal and the general ledger but wonder if you will be able to continue doing so once your business volume increases as you expect.
1. Given your expected business growth, what changes will you make to your present accounting system, based on your learning from the current lesson?
2. You are used to checking your ledger by using a trial balance. Based on the changes you will make to your present accounting system, what other verification method(s) will you use?
3. Explain the advantages of your expanded accounting system over your present account system.
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