Question

When products held in inventory are sold:

Answer 1

Answer:

C.)Finished Goods Inventory is credited.

Explanation:

The journal entry at the time of product sold which are held in inventory is shown below:

Cost of Goods Sold A/c Dr XXXXX

         To Finished goods inventory A/c XXXXX

(Being the product sold is recorded)

For recording this transaction, we debited the cost of goods sold and credited the finished goods inventory account so that the correct posting could be done