Which of the following statements about merchandising activities is true? (More than one answer may be correct.)

a. As inventory is purchased, the Inventory Expense account is debited and Cash (or Accounts Payable) is credited. 

b. Inventory is recorded as an asset when it is first purchased

c. As inventory is sold, its cost is transferred from the balance sheet to the income statement. 

d. As inventory is sold, its cost is transferred from the income statement to the balance sheet.