The Physical Count of Inventory of Clyers Pty Ltd, a Medium-Sized

Multiple Choice

The physical count of inventory of Clyers Pty Ltd, a medium-sized retailer, was higher than shown by the perpetual records.Which of the following could explain the difference?

A) Credit memos for several items returned by customers had not been recorded.
B) Inventory items had been counted but the tags placed on the items had not been taken off the items and added to the inventory accumulation sheets.
C) An item purchased 'FOB shipping point' had not arrived at the date of the inventory count and had not been reflected in the perpetual records.
D) No journal entry had been made on the retailer's books for several items that the retailer returned to its suppliers.