Ace Bonding Company Purchased Inventory on Account $\quad 2,000$ Accounts Payable $\quad 2,000$

Ace Bonding Company purchased inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase using a periodic inventory system?

A) Purchases $\quad 2,000$
Accounts Payable $\quad 2,000$
B) Cost of Goods Sold $\quad 2,000$
Unearned Revenue $\quad 1,000$
Sales Revenue $\quad 3,000$
C) Cost of Goods Sold $\quad 2,000$
Accounts Payable $\quad 2,000$
D) Cost of Goods Sold $\quad 2,000$
Gain $\quad 1,000$
Accounts Payable $\quad 3,000$