 at the end of the day the checking account has in essence going up because the accounts receivable went up and down on the income statement we know that if i run it again there was an increase to the revenue account if i go back to the balance sheet there should have been an increase to the tax account for the sales tax inventory would have gone down the sub ledger for inventory tracking by item also goes down and the cost of goods sold the expense account related to the sale of inventory goes up