Using a Perpetual Inventory System, If Shediac Video Store's Accounting

Multiple Choice

Using a perpetual inventory system, if Shediac Video Store's accounting records show an ending inventory balance of $25,000 and a physical count shows a balance of $23,000, it is necessary to

A) debit its inventory records.
B) purchase additional inventory.
C) remove the nonexistent inventory from its records.
D) credit Cost of Goods Sold.