Active Kids Cycles uses average cost inventory method and adopts a perpetual inventory system. It started March with 30 bicycles that cost $60 each. On 18th March, Active Kids bought 70 bicycles at $80 each. On 31st March, it sold 50 bicycles. To record cost of sales under the average cost inventory costing method on 31st March, the correct journal entry would be: Dr. Inventory $3,700: Cr. Cost of sales $3.700 O Dr. Inventory $3,400; Cr. Cost of sales $3,400 O Dr. Cost of sales $3,400: Cr. Inventory $3,400 O Dr. Cost of sales $4,000; Cr. Inventory $4,000 O Dr. Cost of sales $3.700; Cr. Inventory $3.700