Ace Bonding Company purchased merchandise inventory on account

Subject:AccountingPrice: Bought3

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Ace Bonding Company purchased merchandise inventory on account. The inventory costs $2,100 and is expected to sell for $3,200. How should Ace record the purchase?

  

a)	Inventory 2,100         Accounts payable   2,100
b)	Cost of goods sold 2,100         Inventory payable   2,100
c)	Cost of goods sold 2,100     Profit 1,100         Sales payable   3,200
d)	Costs of goods sold 2,100     Deferred revenue 1,100          Sales in advance   3,200