Cumberland Co. sells $1,114 of merchandise to Hancock Co. for cash. Cumberland paid $779 for the merchandise. Under a perpetual inventory system, which of the following is the correct journal entry?

a. Debit Cash, $1,114; credit Merchandise Inventory, $779

b. Debit Cash, $1,114; credit Sales, $1,114 and debit Cost of Merchandise Sold, $779; credit Merchandise Inventory, $779

c. Debit Accounts Receivable, $1,114; credit Sales, $1,114 and debit Cost of Merchandise Sold, $779; credit Merchandise Inventory, $779

d. Debit Cash, $779; credit Sales, $779