Donaldson Corporation Uses a Periodic Inventory System

Multiple Choice

Donaldson Corporation uses a periodic inventory system. On January 1, inventory is $253,000. On April 5, Donaldson sells inventory with a selling price of $75,000 on account. The cost of the inventory sold is $50,000. The journal entry (entries) to record the sale is (are) ________.

A) debit Cash and credit Sales Revenue
B) debit Accounts Receivable and credit Sales Revenue; debit Cost of Goods Sold and credit Inventory
C) debit Cash and Cost of Goods Sold and credit Sales Revenue and Inventory
D) debit Accounts Receivable and credit Sales Revenue