I need an explanation for how this is the right answer. I don't get it.

= Accounting - Fundamentals of Financial Accounting (Canadian Edition) - Phillips, Libby, Libby, Mackintosh, 5e, Merchandising Operations and the Multi-step Income Statement 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? Read about this Your answer is correct. $64,000 $4,000 $75,000 $46,000 Challenge OK Mc 10 items left Graw Hill Education Read