Fred Received Merchandise on Consignment from Barney

Multiple Choice

Fred received merchandise on consignment from Barney.As of March 31, Fred had recorded the transaction as a purchase and included the goods in inventory.The effect of this on Fred's financial statements for March 31 would be

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