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A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for...

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Accounting

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $8,000 and paid $800 for the freight - in. The company sold the whole lot to a supermarket chain for $14,000 on account. The company uses the specific-identification method of inventory costing. Which of the following entries correctly records the Cost of Goods Sold?
A. Cost of Goods Sold Merchandise Inventory
8,000
B.
Merchandise Inventory
Cost of Goods Sold
C. Cost of Goods Sold
8,000
Sales Revenue
8,000
D. Cost of Goods Sold
8,800
Merchandise Inventory
8,800
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