Show me the steps to solve Complete the following statement. Merchandise inventory that is still available for sale is considered a$($n$)$ Blank$\_\_\_\_\_\_($asset$/$expense$/$revenue$)$ and is reported on the Blank$\_\_\_\_\_\_($balance sheet$/$income statement$)$ and merchandise that is sold during the period is considered a$($n$)$ Blank$\_\_\_\_\_\_($asset$/$expense$/$liability$)$ and reported on the Blank$\_\_\_\_\_\_($balance sheet$/$income statement$).$

Multiple choice question.

asset $->$ income statement $->$ expense $->$ balance sheet

asset $->$ balance sheet $->$ expense $->$ income statement

expense $->$ income statement $->$ asset $->$ balance sheet

expense $->$ balance sheet $->$ asset $->$ income statement