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? O Merchandise Inventory 12.770 Cost of Goods Sold 12.770 O Cost of Goods Sold 12.000 Cost of Goods Sold 12.000