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Middleton Company uses the perpetual inventory method. The company purchased an item of inventory for $130 and sold the item to a customer for $200.

Middleton Company uses the perpetual inventory method. The company purchased an item of inventory for $130 and sold the item to a customer for $200.

What effect will the sale have on the company's Cost of Goods Sold account?

A. The account will increase by $200

B. The account will increase by $130

C. The account will increase by $70

D. No effect

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