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A client wants to donate five widgets (set up as inventory items) to a charity. In the item setup, the cost is $5 and the
A client wants to donate five widgets (set up as inventory items) to a charity. In the item setup, the cost is $5 and the sales price is $10. Fifty widgets were originally purchased at $6 per widget. What is the effect on the General Ledger when this is recorded on a Sales Receipt?
ADebit COGS $30; credit inventory $30
BDebit COGS $30; credit inventory $30; debit bank account $50; credit income $50
CDebit COGS $25; credit inventory $25; debit Bank account funds $50; credit income $50
DDebit COGS $25; credit inventory $25
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