Mitchell Uses a Perpetual Inventory System

Multiple Choice

Mitchell uses a perpetual inventory system.Mitchell sells a computer from inventory for $1,198 on credit.Mitchell originally bought the computer from IBM for $790.What journal entry (entries) will Mitchell prepare to record the sale?

A) Debit Cash and credit Sales Revenue for $1,198;debit Cost of Goods Sold and credit Inventory for $790.
B) Debit Accounts Receivable for $1,198,credit Inventory for $790,and credit Gross Profit for $408.
C) Debit Accounts Receivable and credit Sales Revenue for $1,198;debit Cost of Goods Sold and credit Inventory for $790.
D) Debit Inventory for $790,debit Cost of Goods Sold for $408,and credit Accounts Receivable for $1,198.