The Finished Goods Inventory account is debited when the product is sold.

Name: The Finished Goods Inventory account is debited when the product is sold.
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

The Finished Goods Inventory account is not debited when the product is sold. Instead, the Cost of Goods Sold account is debited to reflect the expense of the products sold. The Finished Goods Inventory account is credited for the cost of the products sold, reducing the balance of the account.

The Finished Goods Inventory Account Is Debited When the Product