If a company sells goods that cost $80,000 for $92,000, the firm will:
A) reduce Finished-Goods Inventory by $80,000.
B) reduce Finished-Goods Inventory by $92,000.
C) report sales revenue on the balance sheet of $92,000.
D) reduce Cost of Goods Sold by $80,000.
E) follow more than one of the other procedures.

Question

Quizplus · Accepted Answer

When a company sells goods, it reduces its Finished-Goods Inventory by the cost of the goods sold, which in this case is $80,000.

If a Company Sells Goods That Cost $80,000 for $92,000