Merchandise inventory that is available for sale is a(n) ________ (asset/expense/revenue) and reported on the ____________ (balance sheet/income statement) and merchandise that is sold during the period is a(n) _______ (asset/expense/liability) and reported on the ____________ (balance sheet/income statement).
A) asset -> balance sheet -> expense -> income statement
B) expense -> balance sheet -> asset -> income statement
C) asset -> income statement -> expense -> balance sheet
D) expense -> income statement -> asset -> balance sheet