Jakey Technologies Has 1,000 Folders in Inventory That Cost $2

Multiple Choice

Jakey Technologies has 1,000 folders in inventory that cost $2.00 each.The company's supplier announced that,effective immediately,all future folders will cost $2.20 each.Jakey Technologies should

A) increase the inventory account by $200 and increase the capital account by $200.
B) increase the inventory account by $200 and decrease the capital account by $200.
C) increase the inventory account by $200 and increase the accounts payable account by $200.
D) increase the inventory account by $200 and decrease the accounts payable account by $200.
E) There is no effect from the price change on the accounts of Jakey Technologies.