A Company Sold Merchandise with a Cost of $217 for $390

Multiple Choice

A company sold merchandise with a cost of $217 for $390 on account.The seller uses the perpetual inventory system.The entry to record the cost of merchandise sold would include ________.

A) a debit to Sales Revenue and a credit to Cash for $390
B) a debit to Cash and a credit to Sales Revenue for $390
C) a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $217
D) a debit to Merchandise Inventory for $217 and a credit to Cost of Goods Sold for $217