Dombrose Company Uses a Perpetual Inventory System

Multiple Choice

Dombrose Company uses a perpetual inventory system. On January 1, inventory is $253,000. On April 5, Dombrose sells inventory with a selling price of $75,000 on account. The cost of the inventory sold is $50,000. The journal entry (entries) to record the sale is (are) ________.

A) debit Cash and Cost of Goods Sold and credit Sales Revenue and Inventory
B) debit Accounts Receivable and credit Sales Revenue; debit Cost of Goods Sold and credit Inventory
C) debit Accounts Receivable and credit Sales Revenue
D) debit Cash and credit Sales Revenue