Middleton Company uses the perpetual inventory method.The company purchased an item of inventory for $130 and sold the item to a customer for $200.What effect will the sale have on the company's inventory account?

Question

Quizplus · Accepted Answer

The sale of the item will decrease the inventory account by the cost of the item, which is $130. The revenue from the sale will be recorded separately in a revenue account.

Middleton Company Uses the Perpetual Inventory Method