A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for

$11,000

and paid

$760

for the

freightin.

The company sold the whole lot to a supermarket chain for

$13,000

on account. The company uses the

specificidentification

method of inventory costing. Which of the following entries correctly records the cost of goods sold?

Question content area bottom

Part 1

A.

Merchandise Inventory	11,760
Cost of Goods Sold		11,760

B.

Cost of Goods Sold	11,000
Merchandise Inventory		11,000

C.

Cost of Goods Sold	11,760
Merchandise Inventory		11,760

D.

Cost of Goods Sold	11,000
Sales Revenue		11,000