In a perpetual inventory system, assuming the company uses the earnings approach for revenue recognition, the required entry(ies) to record the sale of merchandise for $1,000 on credit for goods costing the company $600 would include I. a debit to Cost of Goods Sold and credit to Merchandise Inventory for $600. II. a debit to Accounts Receivable and credit to Merchandise Inventory for $1,000. III. a debit to Accounts Receivable and credit to Sales for $1,000.

a. I & II

I b. I only

c. III only

d. II only