A Trader Bought Goods for Resale on Credit Costing £1,000

Multiple Choice

A trader bought goods for resale on credit costing £1,000 in July and paid for them in August. These were sold on credit for £1,500 in September and the money received in October.
Applying the accruals concept and matching principle:

A) The costs were incurred in July, the revenue was earned in September and the profit of £500 arose in September
B) The costs were incurred in August, the revenue was earned in October and the profit of £500 arose in October
C) There was a loss of £1,000 in July and a profit of £1,500 in September
D) There was a loss of £1,000 in August and a profit of £1,500 in October