At the End of the Month BBB Ltd Determined That

Multiple Choice

At the end of the month BBB Ltd determined that the cost to them of goods that had been sold during the month was $125,000.How would this information be recorded?

A) The information is not recorded as no economic event had taken place.
B) A decrease in inventory of $125,000 and an increase in expenses of $125,000.
C) An increase in inventory of $125,000 and a decrease in cash of $125,000.
D) An increase in expenses of $125,000 and an increase in accounts payable of $125,000