Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 56

Fashion House uses a perpetual inventory system.t the beginning of the year, inventory amounted to $50,000.uring the year, the company purchased merchandise for $230,000 and sold merchandise costing $245,000. physical inventory taken at year-end indicated shrinkage losses of $4,000.rior to recording these shrinkage losses, the yearend balance in the company's Inventory account was:
a.31,000.
b.35,000.
c.50,000.
d.ome other amount.