company sold merchandise with a cost of

$ 226

for

$ 480

on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include ________.

A.

a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $ 226

B.

a debit to Merchandise Inventory for

$ 226

and a credit to Cost of Goods Sold for $ 226

C.

a debit to Cash and a credit to Sales Revenue for $ 480

D.

a debit to Sales Revenue and a credit to Cash for $ 480