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Depends on whether its a cash sale or a credit sale; 1. Cash sale: Cr invetory(BS), Dr cash&bank (BS), you would credit this to the income statement (revenue) as well, this would be reflected in the cash flow statement as a cash in flow (decrease in inventory)
Hope this helps.
Thanks. Could you use the $200 in this instance. Wouldn't COGS have to be factored in somehow? How does it end up balancing.
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