A company sells goods at a selling price of $20,000. The cost of the goods is $15,000. Under a perpetual inventory system, the journal entries prepared to record the credit sale will include one with a debit to:

Multiple Choice

• Inventory and a credit to Sales Revenue for $15,000.

• Cost of Goods Sold and a credit to Inventory for $15,000.

• Inventory and credit to Sales Revenue for $20,000.

• Cost of Goods Sold and a credit to Sales Revenue for $15,000