Answer:
Debit cost of goods sold $40,000
Explanation:
As with the details of inventory we have:
Opening value of inventory = $50,000
Purchases = $100,000
Thus, total inventory = $150,000
On the closing date we have the balance of inventory in hand = $110,000
Therefore, cost of goods sold = Total inventory - Closing
= $150,000 - $110,000 = $40,000
Cost of goods sold is an expense, and shall be debited.
