A company that uses the perpetual inventory system sold goods for $2,500 to a customer on account. The company had purchased the inventory for $500.
Which of the following journal entries correctly records the cost of goods sold?

a. Cost of Goods Sold 500
Sales Revenue 500
b. Merchandise Inventory 500
Cost of Goods Sold 500
c. Cost of Goods Sold 500
Merchandise Inventory 500
d. Accounts Receivable 500
Sales Revenue 500