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Middleton Company uses the perpetual inventory method. The company purchased an item of inventory for $70 and sold the item to a customer for $110.
Middleton Company uses the perpetual inventory method. The company purchased an item of inventory for $70 and sold the item to a customer for $110. What effect will the sale have on the company's inventory account?
Multiple Choice
- The account will decrease by $70.
- The account will decrease by $110.
- The account will decrease by $40.
- No effect.
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