7. On July 1, Polly Company sold merchandise in the amount of $8,500 to Bodder, with credit terms of 2/10, n/30. The cost of the items sold is $7,000. Polly uses the perpetual inventory system. What journal entry should be made by Polly on July 1? Show your work.

Dr. Cr.

1. Sales .8,500

Accounts Receivable8,500

2. Accounts Receivable 8,500

Sales 8,500

Cost of Goods Sold..7,000

Inventory..7,000

3. Accounts Receivable8,500

Sales..8,500

4. Accounts Receivable8,330

Sales.8,330

Cost of Goods Sold..7,000

Inventory..7,000