Question: At the beginning of January Conway Coffee Bean Shop purchased
At the beginning of January, Conway Coffee Bean Shop purchased inventory for $5,000 cash to sell in January and February. The shop sold inventory that cost $2,100 in January and the remainder in February. What is the cost of goods sold for January and the cost of goods sold for February if Conway Coffee uses GAAP? What is the cost of goods sold for each month if Conway Coffee uses cash basis accounting?
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