Neel & Neal Inc. is a retailer of fine leather goods. The companys inventory balance at the

Question:

Neel & Neal Inc. is a retailer of fine leather goods. The company’s inventory balance at the beginning of the year was $300,000; Neel & Neal purchased $250,000 of goods during January, and sales during January were $400,000. What is the balance that would appear in Neel & Neal’s inventory account on February 1 assuming use of a periodic inventory system?