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What will be the impact on the Balance Sheet when a manufacturer sells their inventory to a customer and earns revenue? Question content area bottom

What will be the impact on the Balance Sheet when a manufacturer sells their inventory to a customer and earns revenue?

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Part 1

A.

The raw materials inventory and work in process inventory remains the same but finished goods inventory increases.

B.

The finished goods inventory goes down but the raw materials and work in process inventory remains the same.

C.

The raw materials, work in process and finished goods inventory balances remains the same.

D.

Both the work in process and finished goods inventory balances go down but raw materials remains the same.

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