Quality Products Co. just sold and shipped $1,000 worth of goods using the terms FOB Shipping Point. With its cost of goods at 80% of sales value, Quality makes the following entries in its general ledger
Account Receivable A/c Dr 1000
to sales a/c Cr 1000
Cost of goods sold ac Dr 800
to inventory Cr 800
Sir can you please explain me why inventory has been credited and not cash ?