Find Which of the entries correctly records the sale

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Problem 1: A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $8,000 and paid $850 for the freight-in. The company sold the whole lot to a supermarket chain for $12,000 on account. Which of the following entries correctly records the sale?

a. Merchandise Inventory. 12,000
Cost of Goods Sold. 12000

b. Cost of Goods Sold. 12000
Sales revenue. 12000

c. Accounts Receivable. 12000
Sales Revenue. 12000
Cost of Goods Sold. 8000
Merchandise Inventory. 8000

d. Accounts Receivable. 12000
Sales Revenue. 12000
Cost of Goods Sold. 8850
Merchandise Inventory. 8850

Reference no: EM132939672

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