Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of inventory, costing $$650,$ and sold on account for $$1,020?$

Multiple Choice

A: Account Title Debit Credit

Accounts receivable $1,020$

Sales revenue $1,020$

Cost of goods sold $650$

Inventory $650$

B: Account Title Debit Credit

Inventory $650$

Accounts receivable $650$

Sales $1,020$

Sales revenue $1,020$

C: Account Title Debit Credit

Accounts receivable $1,020$

Sales revenue $650$

Gain on sale $370$

D: Account Title Debit Credit

Inventory $650$

Gain on sale $370$

Sales revenue $1,020$