Assume Grammar Company Uses the Periodic Inventory System and Has

Multiple Choice

Assume Grammar Company uses the periodic inventory system and has a beginning inventory balance of $5,000, purchases of $75,000, and sales of $125,000.Grammar closes its records once a year on December 31.In the accounting records, the inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was

A) equal to $5,000.
B) more than $5,000.
C) less than $5,000.
D) indeterminate.