Testbank, Question 55 When interim accounting reports are prepared on a worksheet and the periodic method of accounting for inventory is used, closing inventory is: recorded in the income statement credit column as a deduction from cost of sales and in the balance sheet debit column as a current asset. is recorded as a debit to the inventory asset account and as credit to the gross profit account. not recorded. recorded in the income statement debit column as a deduction from cost of sales and in the balance sheet debit column as a current asset