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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?
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
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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
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