Assume a company uses the periodic inventory system and has a beginning merchandise inventory balance of $10,000, purchases of $150,000, and sales of $250,000. The company closes its records once a year on December 31. In the accounting records, the merchandise inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was

a. indeterminate.

b. less than $5,000.

c. equal to $5,000.

d. more than $5,000.