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When you sell something, the amount that goes in revenues on the income statement is the selling price of the item x the number of
When you sell something, the amount that goes in revenues on the income statement is the selling price of the item x the number of items sold. What goes into the Cost of Goods Sold account?
1)The inventory balance on the balance sheet after the items are sold OR
2)the cost of the items that were sold (either the cost to purchase from a supplier or the cost to make them if you are a manufacturer)
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