Gruver Company maintains perpetual inventory records.The company's inventory account had a $5,500 balance as of December 31,2012.On that date,a physical count of inventory showed only $5,300 of merchandise in stock.The write-down to recognize the missing inventory will

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The write-down will decrease assets by reducing inventory, increase expense by recognizing the loss, and decrease equity as a result of the increased expense.

Gruver Company Maintains Perpetual Inventory Records