A Retailer Sells TVs at a Selling Price of $20,000

Multiple Choice

A retailer sells TVs at a selling price of $20,000 on account.The total cost of the inventory sold is $15,000.Under a perpetual inventory system the journal entries to record the sale will include:

A) $20,000 will be debited to Inventory and $20,000 will be credited to Accounts Payable.
B) $20,000 will be debited to Accounts Receivable and $20,000 will be credited to Sales Revenue.
C) $20,000 will be credited to Inventory and $20,000 will be credited to sales revenue.
D) $20,000 will be debited to costs of goods sold and $20,000 will be credited to Inventory.