Lauren H. answered 11/10/20
CPA with experience tutoring college accounting courses
If the inventory was repaired and sold the journal entry would be
Increase in repair expense and decrease in cash for the payment.
Inventory 5,000
Cash 5,000
When sold, you will have two entries:
1 to record the sale payment
Cash 46,000
Sales Revenue 46,000
2 to record the sale of inventory
Cost of Goods Sold 48,500
Inventory 48,500
Inventory is now worth 48,500 (43,500 + 5,000 of repairs capitalized)