Inventory on credit affect the balance sheet


How would sale of $200 of inventory on credit affect the balance sheet of an organization if the cost of the inventory sold was $80?

a) It would decrease non-cash assets by $80 and decrease equity by $80.

b) It would increase non-cash assets by $200 and increase equity by $200.

c) Both A and B.

d) None of the above.

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Accounting Basics: Inventory on credit affect the balance sheet
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