Feathertouch Company Sold Merchandize Worth $800 on Credit,terms N/15 $\begin{array}{lll}\text { Accounts Receivables } &100\\\quad \text { Sales }&&100\end{array}$

Multiple Choice

Feathertouch Company sold merchandize worth $800 on credit,terms n/15.The merchandize sold had cost $550.What is the required journal entry to record the transaction and to transfer the cost of merchandize inventory to cost of goods sold under the periodic inventory system?

A)
$\begin{array}{lll}\text { Accounts Receivables } &100\\\quad \text { Sales }&&100\end{array}$

$\text { No entry for transfer to cost of goods sold. }$
B)
$\begin{array}{lcc}\text { Sales } & 800 & \\\quad \text { Accounts Receivables } & & 800 \\\\\text { Merchandize Inventory } &550\\\quad \text { Cost of Goods Sold }&&550\end{array}$
C)
$\begin{array}{llll}\text { Accounts Receivables }&800 \\\text { Merchandize Inventory }&&800\\\\\text { Cost of Goods Sold }&250 \\\text { Merchandize Inventory }&&250\end{array}$
D)
$\begin{array}{lcc}\text { Merchandize Inventory } &800\\\quad \text { Sales }&&800\\\\\text { Cost of Goods Sold }&550 \\\quad \text { Merchandize Inventory }&&550\end{array}$