Hicksville's Department Store Uses a Perpetual Inventory System

Hicksville's Department Store uses a perpetual inventory system. At year-end, the balance in the Inventory controlling account is $1,200,000. Assuming that the inventory records have been maintained properly, a year-end physical inventory:

A) Is unnecessary.
B) Is needed to establish the ending inventory, as the $1,200,000 balance in the Inventory controlling account represents the beginning inventory.
C) Probably will indicate more than $1,200,000 in merchandise on hand.
D) Probably will indicate less than $1,200,000 in merchandise on hand.