A department store uses a perpetual inventory system. At year-end, the balance in the merchandise inventory account is $2.5 million. Assuming that the inventory records have been maintained properly, a year-end physical inventory:
.a. is unnecessary.
b. will probably indicate less than $2 million in merchandise on hand.
c. will probably indicate more than $2 million in merchandise on hand.
d. is required to determine the amount of accounts receivable for the period.
Answers: 1
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