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Ho Designs experienced the following events during Year 1 , its first year of operation: Started the business when it acquired $ 7 0 ,

Ho Designs experienced the following events during Year 1, its first year of operation:
Started the business when it acquired $70,000 cash from the issue of common stock.
Paid $41,000 cash to purchase imventory.
Sold inventory costing $37,500 for $56,200 cash.
Physically counted inventory showing $3,200 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
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