When inventory is sold by a wholesaler or retailer,it is recorded in a different account on the income statement than a manufacturer would use.

Name: When inventory is sold by a wholesaler or retailer,it is recorded in a different account on the income statement than a manufacturer would use.
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Question

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Both wholesalers/retailers and manufacturers record the cost of goods sold (COGS) on the income statement when inventory is sold. The difference lies in how they calculate COGS, not in the account used.

When Inventory Is Sold by a Wholesaler or Retailer,it Is