Chandler Company sold merchandise on credit to Jamie Morgan for 700 and the cost of the merchandise was290. How would Chandler record this sale?
1) Debit Accounts Receivable $700, Credit Sales $700
2) Debit Sales $700, Credit Accounts Receivable $700
3) Debit Cost of Goods Sold $290, Credit Accounts Receivable $290
4) Debit Accounts Receivable $290, Credit Cost of Goods Sold $290
