Ace Bonding Company purchased merchandise inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase?

Multiple Choice

• Inventory	2,000
  Accounts payable		2,000

• Cost of goods sold	2,000
  Deferred revenue	1,000
  Sales in advance		3,000

• Cost of goods sold	2,000
  Inventory payable		2,000

• Cost of goods sold	2,000
  Profit	1,000
  Sales payable		3,000