Use the Following Information for the Following Questions:
Windsor Ltd $\quad 240$

Multiple Choice

Use the following information for the following questions:
Windsor Ltd. uses FIFO to cost its inventory. The following information is available for Windsor's inventory of product # 205:
Beginning inventory: $\quad 240$ units $@ \$ 5.28$ per unit
March 1: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Purchase of 500 units $@ \$ 5.00$ per unit
April 10: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Sale of 200 units $@ \$ 10.20$ per unit
-Assuming Windsor uses the periodic inventory system, the entry to account for the March 1 purchase is

A) debit Inventory and credit Accounts Payable, $3,500.
B) debit Purchases and credit Accounts Payable, $3,500.
C) debit Accounts Payable and credit Purchases, $3,500.
D) debit Accounts Payable and credit Inventory, $3,500.