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BetterBuy Sells a Computer from Inventory for $599 on Credit

Question 78

Multiple Choice

BetterBuy sells a computer from inventory for $599 on credit.BetterBuy originally bought the computer from IBM for $395.What are the journal entries Betterbuy would record?


A) Debit Cash for $599,credit Sales for $599; debit Inventory for $395 and credit Cost of Goods Sold for $395.
B) Debit Accounts Receivable for $599,credit Inventory for $395,and credit Retained Earnings for $204.
C) Debit Accounts Receivable for $599,credit Sales for $599; debit Cost of Goods Sold for $395 and credit Inventory for $395.
D) Debit Inventory for $395,debit Cost of Goods Sold for $204,and credit Accounts Receivable for $599.

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