When a company sells goods,it removes their cost from the Inventory account and reports the cost on the income statement as Selling Expense

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When a company sells goods, it removes their cost from the Inventory account and reports the cost on the income statement as Cost of Goods Sold (COGS) and not Selling Expense. Selling Expense refers to the costs incurred in promoting and selling the goods, such as advertising, sales commissions, etc.

When a Company Sells Goods,it Removes Their Cost from the Inventory