Reference no: EM132045522

Question - Royal Sales experienced the following events during 2014, its first year of operation:

1. Started the business when it acquired $94,000 cash from the issue of common stock.

2. Paid $40,000 cash to purchase inventory.

3. Sold inventory costing $23,200 for $46,000 cash.

4. Physically counted inventory showing $16,500 inventory was on hand at the end of the accounting period.

Required - Calculate the amount of the difference between book balance and the actual amount of inventory as determined by the physical count.