This would be a B.) Debit cost of goods sold and a credit merchandise inventory. Since you have made a sale, you now have to record the cost of the item that you sold, hence you debit the cost of goods sold since you have increased your cost of goods sold account. After that, since you have made a sale, you have lessened your merchandise inventory. So with that, you record taking the items from the inventory by making a credit to merchandise inventory.
