Leo Corporation uses the perpetual inventory system and began business on April 1. During the month Leo made inventory purchases of $84700 on terms of 2/10, n/30. Leo returned $3500 worth of goods during the year. Leo made payment in time to take advantage of the offered cash discounts. Leo sold inventory on account with a value of $71350 with a markup of 30% on the cost. These were the only inventory transaction during the month. What are the possible that the physical count of inventory would be lower than the perpetual record?

Help me, please!