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

The company will reduce Finished-Goods Inventory by the cost of the goods sold, which is $80,000.

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