The accountant for the Peter Company is preparing the income statement for 2019 and the statement of financial position at December 31, 2019. Peter uses the periodic inventory system. The January 1, 2019 merchandise inventory balance will appear

a. only as an asset on the statement of financial position.

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

c. as a deduction in the cost of goods sold section of the income statement and as a current asset on the statement of financial position.

d. as an addition in the cost of goods sold section of the income statement and as a current asset on the statement of financial position.