A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | l | l | } \hline \text { Accounts receivable } & 500 & \\\hline \text { Sales revenue } & & 500 \\\hline\end{array}$$

Multiple Choice

A company that uses the perpetual inventory system sold goods for $3700 to a customer on account.The company had purchased the inventory for $500.Which of the following journal entries correctly records the cost of sales?

A) $$\begin{array} { | c | l | l | } \hline \text { Accounts receivable } & 500 & \\\hline \text { Sales revenue } & & 500 \\\hline\end{array}$$
B) $$\begin{array} { | c | l | l | } \hline \text { Cost of sales } & 500 & \\\hline \text { Inventory } & & 500 \\\hline\end{array}$$
C) $$\begin{array} { | c | l | l | } \hline \text { Inventory } & 500 & \\\hline \text { Cost of sales } & & 500 \\\hline\end{array}$$
D) $$\begin{array} { | c | l | l | } \hline \text { Cost of sales } & 500 & \\\hline \text { Sales revenue } & & 500 \\\hline\end{array}$$