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A business (Company D), purchases 20 tickets to a local sporting event at $10 each for a grand total of $200. Therefore Company D has spent $200 of its cash on hand. Company D's "Cash" account would be credited for $200. Likewise, one of Company Ds "Expense" accounts would be debited for $200. A corresponding journal entry would be written to notate this. While this example has been greatly simplified, the conceptual aspect is sound.
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