Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of inventory, costing $760, and sold on account for $1,240?
Multiple Choice
Account Title Debit Credit
Inventory 760
Gain on sale 480
Sales revenue 1,240
Account Title Debit Credit
Accounts receivable 1,240
Sales revenue 760
Gain on sale 480
Account Title Debit Credit
Accounts receivable 1,240
Sales revenue 1,240
Cost of goods sold 760
Inventory 760
Account Title Debit Credit
Inventory 760
Accounts receivable 1,240
Sales revenue 1,240