Question

A department store uses a perpetual inventory system. At year-end, the balance in the merchandise inventory account is $2 million. Assuming that the inventory records have been maintained properly, a year-end physical inventory _______.A. is required to determine the cost of goods sold for the periodB. will probably indicate more than $2 million in merchandise on handC. will probably indicate less than $2 million in merchandise on handD. is unnecessary

Answer 1

Answer:

The correct option is C.

C. will probably indicate less than $2 million in merchandise on hand.