Company had $950,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $525,000 in each of those years. It also maintained a $250,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $230,000 rather than the correct $250,000.