On December 31, 2011, You Count 300 Tie Clips in Inventory

On December 31, 2011, you count 300 tie clips in inventory. During the next quarter, you carefully record the effect of each purchase and sale transaction on inventory. You buy 128 tie clips during the next quarter. On March 31, 2012, you count 288 tie clips in inventory. Which of the following is not true?

A) Ending inventory on March 31, 2012 should be 288 tie clips.
B) Your company uses the perpetual inventory method.
C) Your company's records would show that 140 tie clips were sold during the quarter.
D) You are certain that no shrinkage or theft must have occurred even though you have not taken a physical count to verify the inventory on hand.