Ace Bonding Company purchased merchandise inventory on account. The inventory costs $3,200 and is expected to sell for $5,400. How should Ace record the purchase?

A.

Inventory	$3,200
Accounts payable		$3,200

B.

Cost of goods sold	$3,200
Deferred sales revenue	$2,200
Sales in advance		$5,400

C.

Cost of goods sold	$3,200
Inventory payable		$3,200

D.

Cost of goods sold	$3,200
Profit	$2,200
Sales payable		$5,400

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