A company purchased inventory for $800 per unit. The company later sold the inventory for $1,000 per unit. The entries to record the sale for cash and cost of goods sold would include debits to which of the following accounts?

Question

Quizplus · Accepted Answer

- To record the sale for cash, there should be a debit to Cash account for the amount received, which is $1,000 per unit.
- To record the cost of goods sold, there should be a debit to Cost of Goods Sold account for the cost of the inventory sold, which is $800 per unit.

A Company Purchased Inventory for $800 Per Unit