If a company uses specific identification and sells a unique item for \$1,200,000, purchased for \$900,000, what journal entries should be made?

• A. Debit Cash \$1,200,000; Credit Revenue \$1,200,000; Debit Cost of Goods Sold \$900,000; Credit Inventory \$900,000
• B. Debit Revenue \$1,200,000; Credit Cash \$1,200,000; Debit Inventory \$900,000; Credit Cost of Goods Sold \$900,000
• C. Debit Cash \$900,000; Credit Revenue \$900,000; Debit Cost of Goods Sold \$1,200,000; Credit Inventory \$1,200,000
• D. Debit Inventory \$1,200,000; Credit Cash \$1,200,000; Debit Revenue \$900,000; Credit Cost of Goods Sold \$900,000

Answer: (A)