Campagna Company Uses the Periodic Inventory Method

Multiple Choice

Campagna Company uses the periodic inventory method.On January 5,Campagna sold merchandise to Kolb Inc.for $1,000 under credit terms of 2/10,n/30,FOB destination.The merchandise had cost $750.How would the company record this transaction?

A) Debit Accounts Receivable for $1,000,credit Sales for $1,000,debit Cost of Goods Sold for $750,and credit Merchandise Inventory for $750.
B) Debit Cash for $1,000,credit Sales for $1,000,debit Cost of Goods Sold for $750,and credit Merchandise Inventory for $750.
C) Debit Accounts Receivable for $1,000 and credit Sales for $1,000.
D) Debit Accounts Receivable for $1,000,debit Cost of Goods Sold for $750,and credit Gross Margin for $750.
E) Debit Accounts Receivable for $980,credit Sales for $980,debit Cost of Goods Sold for $750,and credit Merchandise Inventory for $750.