COGS question

[Dale Alspach]

COGS is an expense. Generally the sale of an item for $100 that costs
(wholesale) $50 results in transactions such as

Sales of Inventory (income) credit $100
Operating Account (asset) debit $100
Inventory (asset) credit $50
COGS (expense) debit $50

I am not an accountant but this is the effect on the general ledger in
QuickBooks Pro of a sale from inventory. Most of this is hidden because these
sales are generally made by using an invoice in QuickBooks Pro. Thus
everything is a side-effect of the setup of items for sale.

Dale Alspach