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How would a sale of 200 of inventory on credit affect the balance sheet if the cost of the inventory sold was 80?
Wiki User
∙ 10y ago
it will create the accounts receivable of 200 while reduce the value of inventory with 80 as well as shows the profit of 120 in equity side of balance sheet.
Wiki User
∙ 10y ago
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Is open inventory a debit or credit?
Opening inventory Debit Cost of Sales Credit Inventory - balance sheet Closing inventory Debit Inventory - balance sheet Credit Cost of Sales An opening inventory is a debit as it is an increase is expenses as the opening inventory is expected to be sold in the coming accounting period. and any thing that is spent to provide goods or services to a customer is an expense.
Does a cash dividend affect the balance sheet?
A cash dividend reduces cash (asset, debit on balance sheet) and reduces retained earnings (part of equity, credit on balance sheet).
Inventory on a classified balance sheet?
Inventory is par to current asset at asset side in classified balance sheet as inventory is used within one fiscal year.
Is admission revenue credit or debit in balance sheet?
Credit side of balance sheet.....Revenue is an Owners Equity account therefore has a Credit Balance.
Is Inventory an asset on balance sheet?
Yes, it is a stock of the company so it is shown as asset in the balance sheet.
Is open inventory a debit or credit?
Opening inventory Debit Cost of Sales Credit Inventory - balance sheet Closing inventory Debit Inventory - balance sheet Credit Cost of Sales An opening inventory is a debit as it is an increase is expenses as the opening inventory is expected to be sold in the coming accounting period. and any thing that is spent to provide goods or services to a customer is an expense.
Does a cash dividend affect the balance sheet?
A cash dividend reduces cash (asset, debit on balance sheet) and reduces retained earnings (part of equity, credit on balance sheet).
Inventory on a classified balance sheet?
Inventory is par to current asset at asset side in classified balance sheet as inventory is used within one fiscal year.
What are the main features of a balance sheet?
The main parts of a balance sheet are profit, loss and inventory.
Is admission revenue credit or debit in balance sheet?
Credit side of balance sheet.....Revenue is an Owners Equity account therefore has a Credit Balance.
Is Inventory an asset on balance sheet?
Yes, it is a stock of the company so it is shown as asset in the balance sheet.
Where is inventory on a balance sheet?
Inventory is normally used within one fiscal year that is why it is current asset of business and shown in asset side of balance sheet.
Are work in process on a balance sheet?
Yes - Like Raw materials inventory, and finished good inventory, Work in process (WIP) is recorded on the balance sheet.
Does inventory go on a balance sheet?
Yes inventory is part of current assets portion of balance sheet as it is usable in current fiscal year for revenue generation.
Is there a difference between a merchandiser's balance sheet and a service company's balance sheet?
Yes in merchandiser balance sheet there is stock of items available in balance sheet while in services balance sheet there is no inventory item available.
What is the purpose of inventory reserve estimates at balance sheet date?
How can be anticipate inventory
Where is inventory is reported in financial statement?
Value of Inventory is an asset on the balance sheet.
