Assume a company has a periodic inventory system with an opening balance of i20,000, purchases of i150,000,

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Assume a company has a periodic inventory system with an opening balance of i20,000, purchases of i150,000, and sales of i250,000. The company closes its records once a year on 31 December. In the accounting records, the inventory account would be expected to have a balance on 31 December prior to adjusting the closing entries that was:

(a) Equal to i20,000.

(b) More than i20,000.

(c) Less than i20,000.

(d) Cannot tell without more information.

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