Which of the journal entries correctly records the cost

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Problem 1: A company that uses the perpetual inventory system sold goods for $2,400 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. Accounts Receivable. 500

Sales Revenue. 500

B. Cost of Goods Sold. 500

Sales Revenue 500

C. Cost of Goods Sold 500

Merchandise Inventory. 500

D. Merchandise Inventory 500

Cost of Goods Sold. 500

Reference no: EM132937875

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