A company uses perpetual inventory in connection with the specific-identification method.The company purchased 30 industrial diamonds for $500 per unit.Later in the month,they purchased another 20 diamonds from another supplier for $480 per unit.On the last day of the month,they sold 18 diamonds to a customer at a price of $800 per unit.Of the 18 diamonds,3 came from the first batch and the remainder came from the second batch.
-Which of the following journal entries correctly records the Sales revenues?
A)

\begin{array} { | l | r | r | } \hline \text { Cash } & 14,400 & \\\hline \text { Sales revenue } & & 14,400 \\\hline\end{array}

\begin{array} { | c | r | r | } \hline \text { Sales revenue } & 14,400 & \\\hline \text { Inventory } & & 14,400 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Cash } & 8,700 & \\\hline \text { Sales revenue } & & 8,700 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Inventory } & 8,700 & \\\hline \text { Sales revenue } & & 8,700 \\\hline\end{array}

Berring Sales Uses the Average-Cost Method

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