Question 30

The accountant for the Lintz Sales Company is preparing the income statement for 2017 and the balance sheet at December 31, 2017. The January 1, 2017 merchandise inventory balance will appear

only as an asset on the balance sheet.

only in the cost of goods sold section of the income statement.

as an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet.

as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet.