The accountant for the Pryor Sales Company is preparing the income statement for 2025 and the balance sheet at December 31, 2025. Pryor uses the periodic inventory system. The January 1, 2025 merchandise inventory balance will be reported A) as an addition to cost of goods sold section of the income statement and as a current asset on the balance sheet. B) as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet. C) only in the cost of goods sold section of the income statement. D) only as an asset on the balance sheet