A business has cash sales of £25 000. Inventory purchases on credit are £10,000. Payments to suppliers for inventory purchased on credit are £6 000. Cost of sales are £7 000. Wages paid are £2 000
-The effect of these transactions on the Inventory account is a:
A) Decrease of £3 000
B) Increase of £3 000
C) Increase of £4 000
D) Decrease of £4 000
Correct Answer:
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