A company that uses the perpetual inventory system sold goods to a customer for cash for $3,500. The cost of the goods sold was $600. Which of the following journal entries correctly records this transaction?

A)
Cost of Goods Sold 3,500
Sales Revenue 3,500

B)
Cash 3,500
Sales Revenue 3,500

Cost of Goods Sold 600
Merchandise Inventory 600

C)
Accounts Receivable 3,500
Cash 3,500

Cost of Goods Sold 600
Merchandise Inventory 600

D)
Merchandise Inventory 3,500
Sales Revenue 3,500

B

Business

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