Item 3 Ace Bonding Company purchased inventory on account. The inventory costs $2,900 and is expected to sell for $4,800. How should Ace record the purchase?

Multiple Choice

Account TitleDebitCreditCost of goods sold2,900 Deferred sales revenue1,900 Sales in advance 4,800Account TitleDebitCreditCost of goods sold2,900 Inventory payable 2,900Account TitleDebitCreditInventory2,900 Accounts payable 2,900Account TitleDebitCreditCost of goods sold2,900 Profit1,900 Sales payable 4,800