Middleton Company uses the perpetual inventory system. The company purchased an item of inventory for $150 and sold the item to a customer for $270. How will the sale affect the company's Inventory account?
A) The inventory account will decrease by $270.
B) The inventory account will decrease by $150.
C) The inventory account will decrease by $120.
D) There is no effect on the inventory account.
Correct Answer:
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