The Zenith Company sells tablet computers for outdoor use that are waterproof, shock resistant and run on solar power. The following information has been extracted from the records of Zenith:

Jan 1: Beginning Inventory of 7,000 units @ $4 each Jan 10: Bought 12,000 units @ $3 Jan 15: Sold 14,000 units @ $8 Jan 30: Bought 8,000 units @ $5

If Zenith uses a perpetual bookkeeping system, the inventory was counted on January 31, the physical stock count revealed there were actually 12,000 units on hand. Zenith should:

Multiple Choice

• Write down inventory but income remains the same

• Write down inventory and show lower income for January

• Do nothing

• None of the other alternatives are correct

• Write up inventory and show higher income for January