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A company that uses the perpetual inventory system sold goods to a customer on account...

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Accounting

A company that uses the perpetual inventory system sold goods to a customer on account on May 7 for $105. The company has the following inventory information:
May 1
Beginning Inventory
8 units at $4 each
May 4
Purchase
10 units at $5 each
May 7
Sale
15 units
The company uses the FIFO method of inventory costing. Which of the following journal entries correctly records the sale on May 7?
A. Sales Revenue
\table[[105,105],[70,70]]
B. Accounts Receivable
105
Sales Revenue
Cost of Goods Sold
Merchandise Inventory
C. Sales Revenue
105
Accounts Receivable
Cost of Goods Sold
67
Merchandise Inventory
D. Accounts Receivable
105
Sales Revenue
67
105
Cost of Goods Sold
Merchandise Inventory
70
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