Dolan Co Received Merchandise on Consignment

Multiple Choice

Dolan Co. received merchandise on consignment. As of March 31, Dolan had recorded the transaction as a purchase and included the goods in inventory. The effect of this on its financial statements for March 31 would be

A) no effect.
B) net income was correct and current assets and current liabilities were overstated.
C) net income, current assets, and current liabilities were overstated.
D) net income and current liabilities were overstated.