Jones Company sold merchandise on account for $80,000. This merchandise cost $55,000. The company uses the perpetual method of accounting for inventory. What would be the correct journal entry or entries to record the transaction?

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Part 1

A.

Accounts Receivable	25,000
Cost of Goods Sold	55,000
Sales Revenue		80,000

B.

Accounts Receivable	80,000
Merchandise Inventory		55,000
Gain on Sale		25,000

C.

Accounts Receivable	80,000
Sales Revenue		80,000
Cost of Goods Sold	55,000
Merchandise Inventory		55,000

D.

Accounts Receivable	80,000
Sales Revenue		80,000