If the perpetual inventory records show lower quantities of inventory than the physical count, an explanation of the difference might be unrecorded:
A)sales.
B)sales discounts.
C)purchases.
D)purchase discounts.

Question

Quizplus · Accepted Answer

Unrecorded purchases would mean that the actual inventory is higher than what is recorded in the perpetual inventory system, explaining why the physical count is higher. Sales, sales discounts, and purchase discounts would not directly increase the quantity of inventory.

If the Perpetual Inventory Records Show Lower Quantities of Inventory