Unger Company uses the perpetual inventory method. Unger sold goods that cost $3,500 for $7,200. If the sale was made to a customer on account, the sale will:

Name: Unger Company uses the perpetual inventory method. Unger sold goods that cost $3,500 for $7,200. If the sale was made to a customer on account, the sale will:
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Question

Quizplus · Accepted Answer

The sale increases accounts receivable (an asset) by $7,200 and decreases inventory (an asset) by $3,500, resulting in a net increase in total assets of $3,700.

Unger Company Uses the Perpetual Inventory Method