On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system and the gross method. The journal entry or entries that Shilling will make on May 1 is:
A.
| Sales | 5,800 | |
| Accounts receivable | 5,800 |
B.
| Sales | 5,800 | |
| Accounts receivable | 5,800 | |
| Cost of goods sold | 4,000 | |
| Merchandise Inventory | 4,000 |
C.
| Accounts receivable | 4,000 | |
| Sales | 4,000 |
D.
| Accounts receivable | 5,800 | |
| Sales | 5,800 |
E.
| Accounts receivable | 5,800 | |
| Sales | 5,800 | |
| Cost of goods sold | 4,000 | |
| Merchandise Inventory | 4,000 |
Answer: E
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