F&G Sporting Goods sells baseball equipment to a customer for which F&G had paid $10,000. Which one of the following choices describes the most appropriate accounting for the transaction?

• Debit inventory $10,000; credit cost of goods sold $10,000
• Debit inventory $10,000; credit accounts payable $10,000
• Debit cost of goods sold $10,000; credit inventory $10,000
• Debit cost of good sold $10,000; credit cash $10,000