XYZ Company purchased merchandise inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should XYZ record the purchase?

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

AB Company received $8,000 for 6 months' rent in advance. How should AB record this transaction?

Prepaid rent	8,000
Rent expense		8,000

Cash	8,000
Deferred revenue		8,000

Interest expense	8,000
Interest payable		8,000

Salaries expense	8,000
Salaries payable		8,000