Finished Goods Inventory decreases by the

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Finished Goods Inventory refers to products that have been completed but have not yet been sold to customers. As such, the cost of these goods is recorded as a balance in the inventory account until they are sold. When the goods are sold, the cost of goods sold (COGS) account is debited and the finished goods inventory account is credited, reducing the balance of the inventory account. Therefore, as products are sold, the cost of these goods is recorded as a decrease in Finished Goods Inventory.

Finished Goods Inventory Decreases by the