Feathertouch Company sold merchandise worth $1,600 on credit, terms n/15. The merchandise sold had cost $1,100. What is the required journal entry to record the transaction and to transfer the cost of merchandise inventory to cost of goods sold under the periodic inventory system?
A) Accounts Receivables 1,600 Sales 1,600No entry for transfer to cost of goods sold

B) Sales 1,600 Accounts Receivables 1,600Merchandise Inventory 1,100Cost of Goods Sold 1,100
C) Accounts Receivables 1,600 Merchandise Inventory 1,600Cost of Goods Sold 1,100Merchandise Inventory 1,100
D) Merchandise Inventory 1,600 Sales 1,600Cost of Goods Sold 1,100Merchandise Inventory 1,100

A

Business

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