A company sold inventory for $1,200 that was purchased for $700. The company records which of the following when it sells the inventory using a perpetual inventory system?

A. No entry is required for cost of goods sold and inventory.
B. Debit Inventory $700; credit Cost of Goods Sold $700.
C. Debit Cost of Goods Sold $1,200; credit Inventory $1,200.
D. Debit Cost of Goods Sold $700; credit Inventory $700.


Answer: D

Business

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