Assume a Company Uses the Periodic Inventory System and Has

Multiple Choice

Assume a company uses the periodic inventory system and has a beginning merchandise inventory balance of $10,000,purchases of $150,000,and sales of $250,000.The company closes its records once a year on December 31.In the accounting records,the merchandise inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was

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