Sheridan Co

Multiple Choice

Sheridan Co.uses a perpetual inventory system.On May 1,beginning inventory was $350,000.During May,Sheridan purchased $122,500 of inventory and sold $248,500 of inventory.After the store closed on May 31,employees counted the inventory in the store and found that $210,000 of inventory remained unsold.What was Sheridan's inventory shrinkage?

A) $14,000
B) $224,000
C) $262,500
D) $161,000