An entity's physical count of inventories was lower than the inventory quantities shown in its perpetual records. This situation could be the result of the failure to record:
A)sales.
B)sales returns.
C)purchases.
D)purchase discounts.

Question

Quizplus · Accepted Answer

If sales are not recorded, the inventory would be reduced physically but not in the perpetual records, leading to a discrepancy where the physical count is lower than the records.

An Entity's Physical Count of Inventories Was Lower Than the Inventory