Earle sold inventory on credit for 400. The goods were estimated to have a cost of 150. Under the perpetual inventory method, how would the sale of goods be recorded?
1) Dr Accounts receivable 400; Cr Sales revenue 400 Dr Inventory 150; Cr COGS 150
2) Dr Accounts receivable 400; Cr Sales revenue 400 Dr COGS 250; Cr Inventory 250
3) Dr Accounts receivable 400; Cr Sales revenue 400 Dr COGS 150; Cr Inventory 150
4) Dr Accounts receivable 400; Sales revenue 400