A company started the year with a normal balance of $68,000 in the Inventory account.During the year,debits totaling $45,000 and credits totaling $55,000 were posted to the Inventory account.Which of the following statements about the Inventory account is correct?
A) The normal balance of the Inventory account is a credit balance.
B) After these amounts are posted, the balance in the Inventory account is a credit balance of $58,000.
C) The Inventory account is decreased by debits.
D) The debits and credits posted to the Inventory account caused it to decrease by $10,000.

Question

Quizplus · Accepted Answer

The Inventory account started with a $68,000 debit balance. Debits increase the account by $45,000, and credits decrease it by $55,000. The net effect is a decrease of $10,000, resulting in a $58,000 debit balance.

A Company Started the Year with a Normal Balance of $68,000