6. Merchandise inventory: A. is an asset on the balance sheet. B. is the cost of inventory that has not been sold. C. is neither A or B. D. is both A and B. 7. The Merriweather Merchandising Company had the following records: Net sales $88,500 Beginning inventory 10,500 Purchases 28,000 Freight-in 2,000 Sales salaries expense 9,700 Ending inventory 12,000 What is the cost of goods sold for this company? A. $26,500 B. $29,500 C. $28,500 D. $31,500 8. Refer to Question 7. What is the gross profit for this company? A. $62,000 B. $60,000 C. $50,300 D. $52,300