12 The accounting records of Seattle Outlet include the following for January: out of Sales Purchases Sales Discounts Freight - In Purchase Retums and Allowances $326,000 260,000 6,000 14,000 2,000 n A physical count determined the cost of inventory on hand at January 31 to be $42,000. If gross profit amounts to 25% of net sales, compute the beginning inventory at January 1. Select one: a. $10,000 b. $26,000 c. $8,000 d. $24,000 e. $6,000