Davis Hardware Company Uses a Perpetual Inventory System $\quad 620$ Cost of Goods Sold

Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of inventory costing $620 for $960 on account?

A) Inventory $\quad 620$
Cost of Goods Sold $\quad 620$
Sales Revenue $\quad 960$
Accounts Receivable $\quad 960$
B) Accounts Receivable $\quad 960$
Sales Revenue $\quad 960$
Cost of Goods Sold $\quad 620$
Inventory $\quad 620$
C) $\begin{array} { l l } \text { Inventory } & 620 \\ \text { Gain } & 340\\ \text {Sales Revenue}&960 \end{array}$

D) Accounts Receivable $\quad 960$
Sales Revenues $\quad 620$
Gain $\quad 340$