Financial Accounting Fundamentals | Online Course Support

The Garden Spot purchases $20,000 worth of trees they hope to resell to customers. In which of the following Balance Sheet accounts should The Garden Spot record the trees purchased?

 
 
 
 
 
 

Correct answer. The inventory is now owned/controlled by the company and is expected to provide future economic benefits, so the inventory purchased should be recorded in an Asset account.

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