On December 1, 2008, ABC Linens Sold Merchandise Which Costs

On December 1, 2008, ABC Linens sold merchandise which costs $400 on account to the Green Hotel Co.for $600 with terms of 3/10, n/30.ABC Linens uses a perpetual inventory system.The journal entry to record this transaction on ABC Linens' books will include:

A) a debit to Cost of Goods Sold for $600.
B) a debit to Sales Discounts for $18.
C) a credit to Sales Revenue for $200.
D) a credit to Merchandise Inventory for $400.