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6 May, 2015 - 17:10

The finished goods account is a controlling account, with a subsidiary ledger called the stock ledger or the finished goods ledger. The finished goods ledger provides detailed information on goods manufactured and shipped on quantity, price, date, and unit cost. When finished goods are sold, the cost of goods sold is debited and finished goods credited. In the event goods are returned by buyers, the finished goods account is debited and the cost of goods sold credited.