BetterBuy Sells a Computer from Inventory for $599 on Credit

question 78

Multiple Choice

BetterBuy sells a computer from inventory for $599 on credit.BetterBuy originally bought the computer from IBM for $395.What are the journal entries Betterbuy would record?

• A)Debit Cash for $599,credit Sales for $599; debit Inventory for $395 and credit Cost of Goods Sold for $395.
• B)Debit Accounts Receivable for $599,credit Inventory for $395,and credit Retained Earnings for $204.
• C)Debit Accounts Receivable for $599,credit Sales for $599; debit Cost of Goods Sold for $395 and credit Inventory for $395.
• D)Debit Inventory for $395,debit Cost of Goods Sold for $204,and credit Accounts Receivable for $599.