A company sold inventory for $1,200 that was purchased for $700. The company records which of the following when it sells inventory using a periodic inventory system?
A) No entry is required for cost of goods sold and inventory.
B) Debit Cost of Goods Sold $700 credit Inventory $700.
C) Debit Cost of Goods Sold $1,200 credit Inventory $1,200.
D) Debit Inventory $700 credit Cost of Goods Sold $700.
Answer: A
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