A Company That Uses the Perpetual Inventory System Purchased 500

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $12,000 and paid $770 for the freight-in.The company sold the whole lot to a supermarket chain for $13,000 on account.The company uses the specific-identification method of inventory costing.Which of the following entries correctly records the cost of goods sold?

A) $$\begin{array} { | l | r | r | } \hline \text { Cost of Goods Sold } & 12,770 & \\\hline \text { Merchandise Inventory } & & 12,770 \\\hline\end{array}$$
B) $$\begin{array} { | l| r | r | } \hline \text { Merchandise Inventory } & 12,770 & \\\hline \text { Cost of Goods Sold } & & 12,770 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 12,000 & \\\hline \text { Sales Revenue } & & 12,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Cost of Goods Sold } & 12,000 & \\\hline \text { Merchandise Inventory } & & 12,000 \\\hline\end{array}$$