Explanation
Journalizing is the process of recording a business transaction in the accounting records. This activity only applies to the double-entry bookkeeping system.
This calls for the identification of the general ledger accounts that will be altered as a result of the transaction.
A letter of credit, or "credit letter," is a letter from a bank guaranteeing that a importer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
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