Missouri Company Uses a Perpetual Inventory System

Missouri Company uses a perpetual inventory system.On October 1,Missouri Company sold inventory on account in the amount of $6,500 to Montebello Company,terms 1/10,n/30.The items cost Missouri $4,200.On October 4,Montebello returns some of the inventory.This inventory had a selling price of $500 and a cost of $200.On October 8,Montebello Company paid Missouri Company the amount due on that date. What journal entry (entries) will Missouri prepare on October 1 to record this sale?

A) Debit Accounts Receivable and credit Sales Revenue for $6,500.
B) Debit Sales Revenue for $6,500 and credit Accounts Receivable and credit for $6,500;debit Cost of Goods Sold and credit Inventory for $4,200.
C) Debit Cost of Goods Sold for $4,200,debit Gross Profit for $2,300,and credit Sales Revenue for $6,500.
D) Debit Accounts Receivable and credit Sales Revenue for $6,500;debit Cost of Goods Sold and credit Inventory for $4,200.