Ace Bonding Company purchased merchandise inventory on account. The inventory costs $3,800 and is expected to sell for $6,600. How should Ace record the purchase?

Multiple Choice

• Inventory	3,800
  Accounts payable		3,800

• Cost of goods sold	3,800
  Deferred revenue	2,800
  Sales in advance		6,600

• Cost of goods sold	3,800
  Profit	2,800
  Sales payable		6,600