A company sold merchandise with a cost of $217 for $390 on account. The seller uses the perpetual inventory system. The entry to record the cost of merchandise sold would include . A. a debit to Merchandise Inventory for $231 and a credit to Cost of Goods Sold for $231
B. a debit to Cash and a credit to Sales Revenue for $480
C. a debit to Sales Revenue and a credit to Cash for $480
D. a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $231

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)