A company that uses the perpetual inventory system sold goods for $3,500 to a customer on account. The company had purchased the inventory for $900. Which of the following journal entries correctly records the cost of goods sold?

A)
Cost of Goods Sold 900
Sales Revenue 900

B)
Merchandise Inventory 900
Cost of Goods Sold 900

C)
Cost of Goods Sold 900
Merchandise Inventory 900

D)
Accounts Receivable 900
Sales Revenue 900

C

Business

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