Hi,

For a homework assignment, I am trying to put together an income statement for a company and am recording the transactions on T-Accounts. The transaction states "Parts inventory from the beginning of the month was depleted by $1,200." Because inventory is an asset and it decreased, I know that the Inventory T-account needs to be credited. But I cannot figure out the other account that needs to be debited.

Thanks!

CaptainForest

Debit Cost of Goods Sold