A purchase of inventory on account affects which accounts on the purchaser's books?

1. Purchases, inventory, and cost of goods sold all increase, and cash decreases
2. Only inventory and accounts payable both increase

c) Purchases, accounts payable, and inventory all increase

1. Inventory increases and cash decreases
2. Sales, accounts payable, inventory and cost of goods sold all increase
3. Only purchases and accounts payable both increase