Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of merchandise, costing $780, and sold on account for $1,280? Multiple Choice 1,280 Accounts receivable Sales revenue Gain on sale 780 500 L O 78A 780 Inventory Accounts receivable Sales Sales revenue 1,280 1,280 Inventory Gain on sale Sales revenue 780 500 1,280 1,280 Accounts receivable Sales revenue 1,280