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:

Jan1: Beginning Inventory of 7000 units @ $4 each

Jan10: Bought 12,000 units @ $3

Jan15: 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:

Write up inventory and show higher income for January

Do nothing

Write down inventory and show lower income for January

Write down inventory but income remains the same

None of the above