Merchandise Inventory on the Balance Sheet Based on the data below, how would the merchandise inventory appear on the balance sheet, assuming that the lower of cost or market is used and the cost is determined by the FIFO method? Total cost: $74,300 Total market: $72,900 Lower of cost or market: $70,400 The merchandise inventory would appear in the current assets Merchandise inventory-at lower of cost (FIFO) or market section, as follows: Feedback Check My Work Remember that merchandise inventory is an Asset Account. The method of determining the cost of the inventory and the method of valuing the inventory is also reported. G