Question: Under the periodic inventory system, what is the correct entry to record the cost of the sale of a dining suite sold to a customer

Under the periodic inventory system, what is the correct entry to record the cost of the sale of a dining suite sold to a customer for $1650 including 10% GST? (The dining suite was originally purchased on credit for $990 including GST of $90).

DR Purchases $1650; CR Sales $1650

DR Cost of sales $900; CR Inventory $900

DR Purchases $900; CR Inventory $900

The cost of each sale is not recorded under the periodic inventory system

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