BetterBuy sells a computer from inventory for $599 on credit.BetterBuy originally bought the computer from IBM for $395 and uses the perpetual inventory system.How is the sale recorded in BetterBuy's journal entries?
A) Debit Cash for $599,credit Sales for $599;debit Cost of goods sold for $395 and credit Inventory for $395.
B) Debit Accounts Receivable for $599,credit Inventory for $395,and credit gross profit for $204.
C) Debit Accounts Receivable for $599,credit Sales for $599;debit Cost of Goods Sold for $395 and credit Inventory for $395.
D) Debit Inventory for $395,debit Cost of Goods Sold for $204,and credit Accounts Receivable for $599.
Correct Answer:
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