On March 12, Klein Company, Inc $$\begin{array} { | l | r | r | } \hline \text { Sales } & 7,800 & \\\hline \text { Accounts receivable } & & 7,800 \\\hline \end{array}$$

Multiple Choice

On March 12, Klein Company, Inc. sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system. The journal entry or entries that Klein will make on March 12 is:

A) $$\begin{array} { | l | r | r | } \hline \text { Sales } & 7,800 & \\\hline \text { Accounts receivable } & & 7,800 \\\hline \end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Sales } & 7,800 & \\\hline \text { Accounts receivable } & & 7,800 \\\hline \text { Cost of goods sold } & 4,500 & \\\hline \text { Merchandise Inventory } & & 4,500 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Accounts receivable } & 7,800 & \\\hline \text { Sales } & & 7,800 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Accounts receivable } & 7,800 & \\\hline \text { Sales } & & 7,800 \\\hline \text { Cost of goods sold } & 4,500 & \\\hline \text { Merchandise inventory } & & 4,500 \\\hline \end{array}$$
E) $$\begin{array} { | l | r | r | } \hline \text { Accounts receivable } & 4,500 & \\\hline \text { Sales } & & 4,500 \\\hline\end{array}$$