BetterBuy Uses a Perpetual Inventory System

Multiple Choice

BetterBuy uses a perpetual inventory system.BetterBuy sells a computer from inventory for $599 on credit.BetterBuy originally bought the computer from IBM for $395.What journal entry (entries) will BetterBuy prepare to record the sale?

A) Debit Cash and credit Sales Revenue for $599; debit Cost of Goods Sold and credit Inventory for $395
B) Debit Accounts Receivable for $599, credit Inventory for $395, and credit Gross Profit for $204
C) Debit Accounts Receivable and credit Sales Revenue for $599; debit Cost of Goods Sold and credit Inventory for $395
D) Debit Inventory for $395, debit Cost of Goods Sold for $204, and credit Accounts Receivable for $599