For Several Years, an Entity's Physical Inventory Count Has Been

Multiple Choice

For several years, an entity's physical inventory count has been lower than what was shown on the books at the time of the count so that downward adjustments to the inventory account were required. Contributing to the inventory problem could be weaknesses in internal controls that led to the failure to record some:

A) purchases returned to vendors.
B) sales returns received.
C) sales discounts allowed.
D) cash purchases.