Journal entry to record cost of goods sold

Reference no: EM13146418

High Ridge Merchandising Co. sold inventory that had a cost of $10,000. Assuming High Ridge uses the perpetual inventory method, the effect of the journal entry to record Cost of Goods Sold would:

a. increase assets & increase expenses

b. decrease assets & decrease equity

c. increase assets & increase equity

d. decrease assets & increase liabilities

Reference no: EM13146418

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