Ace Electronics Uses a Perpetual Inventory System

Multiple Choice

Ace Electronics uses a perpetual inventory system.On May 1,beginning inventory was $100,000.During May,Ace purchased $35,000 of inventory and sold $71,000 of inventory.After the store closed on May 31,employees counted the inventory in the store and found that $60,000 of inventory remained unsold.What was Ace's inventory shrinkage?

A) $4,000
B) $64,000
C) $75,000
D) $46,000