How would you record the cost of goods sold for yacht B, valued at \$500,000?

• A. Debit Cash \$500,000; Credit Revenue \$500,000
• B. Debit Revenue \$500,000; Credit Inventory \$500,000
• C. Debit Cost of Goods Sold \$500,000; Credit Inventory \$500,000
• D. Debit Inventory \$500,000; Credit Cost of Goods Sold \$500,000

Answer: (C)