Able Sells a Piece of Equipment to Smythe for $2,300

Multiple Choice

Able sells a piece of equipment to Smythe for $2,300 on August 1. The equipment cost $1,300. The equipment is picked up by Smythe on August 10. How is this transaction accounted for under a perpetual system of inventory?

A) $\begin{array}{lrr} \text {Sales } &1,300\\ \text { Accounts Receivable } &&1,300\\\\ \text { Cost of Goods Sold } &1,300\\ \text { Inventory} &&1,300\\\end{array}$

B) $\begin{array}{l}\text { Accounts Receivable } &2,300\\\text { Sales }&&2,300\end{array}$
$\begin{array}{lrr} \text { Cost of Goods Sold} &1,300\\ \text { Inventory } &&1,300\\\end{array}$

C) $\begin{array} { l } \text { Sales } &2,300\\\quad \text { Accounts Receivable }&&2,300\end{array}$
$\begin{array}{lrr} \text { Cost of Goods Sold} &2,300\\ \text { Inventory } &&2,300\\\end{array}$


D) $$\begin{array} { lll} \text { Accounts Receivable }&2,300 \\\text { Sales }&&2,300\end{array}$$