A company sold merchandise with a cost of $231 for $480 on a

A company sold merchandise with a cost of $231 for $480 on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include ________.

A) a debit to Sales Revenue and a credit to Cash for $480
B) a debit to Cash and a credit to Sales Revenue for $480
C) a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $231
D) a debit to Merchandise Inventory for $231 and a credit to Cost of Goods Sold for $231

ANSWER

C