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On March 12, Fret Company sold merchandise in the amount of $7,800 to Babson Company,...

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Accounting

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On March 12, Fret Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10,n/30. The cost of the items sold is $4,500. Fret uses the perpetual inventory system and the gross method of accounting for sales. The journal entry or entries that Fret will make on Marc 12 is (are): Multiple Choice \begin{tabular}{|c|c|c|} \hline \multicolumn{1}{|c|}{ Account Title } & Debit & Credit \\ \hline Sales & 7,800 & \\ \hline Accounts Receivable & & 7,800 \\ \hline Cost of Goods Sold & 4,500 & \\ \hline Merchandise Inventory & & 4,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Account Title & Debit & Credit \\ \hline Accounts Receivable & 7,800 & \\ \hline Sales & & 7,800 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{1}{|c|}{ Account Title } & Debit & Credit \\ \hline Accounts Receivable & 4,500 & \\ \hline Sales & & 4,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{1}{|c|}{ Account Title } & Debit & Credit \\ \hline Sales & 7,800 & \\ \hline Accounts Receivable & & 7,800 \\ \hline \end{tabular}

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