Ace Electronics Uses a Perpetual Inventory System

question 122

Multiple Choice

Ace Electronics uses a perpetual inventory system.On May 1,beginning inventory was $100,000.During May,Ace purchased $35,000 of inventory and sold $71,000 of inventory.After the store closed on May 31,employees counted the inventory in the store and found that $60,000 of inventory remained unsold.What was Ace's inventory shrinkage?

• A) $4,000
• B) $64,000
• C) $75,000
• D) $46,000

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Definitions:

Private Sale

is a transaction where goods, assets, or shares are sold directly from one party to another without public auction or market trading.

Incidental Damages

Expenses or costs that arise indirectly from a breach of contract or other wrongdoing, which may be recoverable under the law.

Breach

The violation or non-fulfillment of a legal obligation, contract, or agreement.

Expenses

Monetary outlays or expenditures that individuals, businesses, or other entities incur during their operations, which may include costs related to goods, services, operations, or investments.