A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 500 & \\\hline \text { Sales Revenue } & & 500 \\\hline\end{array}$$

question 50

Multiple Choice

A company that uses the perpetual inventory system sold goods for $2,600 to a customer on account. The company had purchased the inventory for $500. Which of the following journal entries correctly records the cost of goods sold?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 500 & \\
• \hline \text { Sales Revenue } & & 500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 500 & \\
• \hline \text { Cost of Goods Sold } & & 500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 500 & \\
• \hline \text { Merchandise Inventory } & & 500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 500 & \\
• \hline \text { Sales Revenue } & & 500 \\
• \hline
• \end{array}\]