A chiropractor facility sells a custom-blended herbal product to its patients for $20 a bottle. At the end of its fiscal year it has 50 bottles. How should this be entered in the balance sheet?

Question

Quizplus · Accepted Answer

Inventory on the balance sheet represents the cost of products that are yet to be sold. In this case, the 50 bottles of herbal product, valued at $20 each, amount to $1,000 of inventory.

A Chiropractor Facility Sells a Custom-Blended Herbal Product to Its