Bally Boutique Uses a Perpetual Inventory System When Recording Its

Multiple Choice

Bally Boutique uses a perpetual inventory system when recording its purchases and sales of inventory. The business sells $6,000 of goods to charge account customers and the goods originally cost Bally, $3,000. The entry to record the sale would include:

A) a debit to Merchandise Inventory for $3,000 and a credit to Cost of Goods Sold for $3,000
B) a debit to Accounts Receivable for $3,000 and a credit to Sales for $3,000
C) a debit to Cost of Goods Sold for $3,000 and a credit to Merchandise Inventory for $3,000
D) a debit to Sales for $6,000 and a credit to Merchandise Inventory for $6,000