O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare recognized cost of goods sold of $4,850 for job #132.The recognition of this event will include a decrease to which of the following accounts?:

Question

Quizplus · Accepted Answer

Recognizing cost of goods sold is an asset use transaction.Assets (Finished Goods Inventory)and stockholders' equity (Retained Earnings)both decrease.The increase in the expense,cost of goods sold,decreases net income.

O'Hare Company,is a Manufacturing Firm That Uses a Job-Order Cost