A small department store chain saw the leather goods in Problem 6 above and offered to buy a small amount from you. The two companies agreed; your company would sell $6500 worth of this merchandise to the other company on account. The cost of the merchadise was $3900 Credit terms were set at Net 30 Shipping is F.O.B. Destination; the cost is $125 and will be paid in cash Prepare the journal entries necessary for this purchase. Choose the correct answer and place the letter corresponding to it on the answer sheet for Prob. 7. Debit Credit a) A/R Sales 6500 6500 COMS 3900 Inventory 3900 Freight Expense 125 Cash 125 b) Cash 6500 Sales 6500 COMS 3900 3900 ChInventory c) A/R 6500 6500 Sales 125 Inventory 125 Cash d) None of these