If a company sells goods that cost 80000 for 92000 the firm

If a company sells goods that cost $80,000 for $92,000, the firm will:

reduce Finished-Goods Inventory by $80,000.

reduce Finished-Goods Inventory by $92,000.

report sales revenue on the balance sheet of $92,000.

reduce Cost of Goods Sold by $80,000.

follow more than one of the other procedures.

Solution

Answer

the firm should reduce the closing inventory by 80000

reduce Finished Goods inventory by 80000