The Physical Count of Inventory of a Retailer Was Higher

Multiple Choice

The physical count of inventory of a retailer was higher than shown in its perpetual records. Which of the following could explain the difference?

A) Inventory items had been counted but tags placed on the items had not been taken off the items and added to the inventory accumulation sheets.
B) Credit memos for several items returned by customers had not been prepared.
C) No journal entry had been made on the retailer's books for several items returned to its suppliers.
D) 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.