Ho Designs experienced the following events during Year $1,$ its first year of operation:

Started the business when it acquired $$84,000$ cash from the issue of common stock.

Paid $$37,000$ cash to purchase inventory.

Sold inventory costing $$22,100$ for $$43,000$ cash.

Physically counted inventory showing $$14,700$ inventory was on hand at the end of the accounting period.

Required:

a$.$ Determine the amount of the difference between book balance and the actual amount of inventory as determined by the physical count.

Difference in book and actual inventory