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Middleton Company uses the perpetual inventory method. The company purchased an item of inventory for $150 and sold the item to a customer for $270.

Middleton Company uses the perpetual inventory method. The company purchased an item of inventory for $150 and sold the item to a customer for $270. What effect will the sale have on the company's inventory account?

A The account will decrease by $150.

B The account will decrease by $120.

C The account will decrease by $270.

D No effect.

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