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 perpetual inventory system?

a. inventory 2,000
accounts payable 2,000
b. cost of goods sold 2,000
deferred revenue 1,000
sales revenue 3,000
c. cost of goods sold 2,000
accounts payable 2,000
d. cost of goods sold 2,000
gain 1,000
accounts payable 3,000

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow