On June 15, a company sold merchandise on credit terms n/30, FOB destination, $1,200 . The cost of the merchandise was $400 . Assuming a perpetual inventory system is used, the entries to record the transaction are
a. a debit to Accounts Receivable and a credit to Sales for $1,200; and a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $400.
b. a debit to Sales and a credit to Accounts Receivable for $1,200; and a debit to Merchandise Inventory and a credit to Cost of Goods Sold for $400.
c. a debit to Accounts Receivable and a credit to Sales for $1,200; and a debit to Cost of Goods Sold and a credit to Purchases for $400.
d. none of these are correct.
a
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