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Royal Sales experienced the following events during 2014, its first year of operation: 1. Started the business when it acquired $96,000 cash from the issue
Royal Sales experienced the following events during 2014, its first year of operation:
1. | Started the business when it acquired $96,000 cash from the issue of common stock. |
2. | Paid $41,000 cash to purchase inventory. |
3. | Sold inventory costing $23,600 for $47,000 cash. |
4. | Physically counted inventory showing $17,100 inventory was on hand at the end of the accounting period. |
Required |
a. | Calculate the amount of the difference between book balance and the actual amount of inventory as determined by the physical count. |
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