Inventory shrinkage is recorded when

A) merchandise is returned by a buyer
B) merchandise purchased from a seller is incomplete or short
C) merchandise is returned to a seller
D) there is a difference between a physical count of inventory and inventory records

Inventory Shrinkage

The loss of products between purchase and sale, typically due to theft, damage, or errors in counting.

Physical Count

Physical count involves the manual counting and verification of the quantities of inventory or stock a business holds at a specific point in time.

Inventory Records

Documentation of a company's inventory levels, transactions, and movements, crucial for managing and valuing stock.