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