Mountain Day Spa sold merchandise inventory on credit, terms n/30, to Marvin Smith, $400. Cost of goods sold was $250. When using a manual accounting information system, where should Mountain record this transaction, and what is the appropriate column in which to record the $250? OA. Cash receipts journal, Cash DR, Sales Revenue CR OB. Sales journal, Accounts Receivable DR, Sales Revenue CR OC. Sales journal; Cost of Goods Sold DR, Merchandise Inventory CR OD. Cash receipts journal; Cash DR, Accounts Receivable CR

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…