Faust Company Uses the Perpetual Inventory System

Multiple Choice

Faust Company uses the perpetual inventory system.Faust sold goods that cost $2,300 for $3,600.The sale was made on account.What is the net effect of the sale on the company's financial statements? (Consider the effects of both parts of this event. )

A) Increase total assets by $2,300
B) Increase total stockholders' equity by $3,600
C) Increase total assets by $1,300
D) Increase total assets by $3,600