The accounting records of Seattle Outlet include the following for January Sales $326,000 Purchases $260,000 Sales Discounts $6,000 Freight - In $2,000 Purchase Returns and Allowances $9,000 A physical count determined the cost of inventory on hand at January 31 to be $31,000. If gross profit amounts to 30% of net sales, compute the beginning inventory at January 1. Select one: O a. $4,000 O b. $19,500 O c. $7,000 O d. $11,000 O e. $2,000