Sheila is a warehouse manager who is in charge of her company's inventory.
Her company uses a perpetual inventory system. Under which circumstance
would she have to update inventory records?
A. An unsold inventory item is left on the shelf in the warehouse.
B. The company is deciding whether to reorder new inventory.
C. The company discovers that customers are satisfied with
purchases.
D. An unsold inventory item is discarded.



Answer :

Final answer:

In a perpetual inventory system, updating inventory records is necessary when an unsold item is discarded to maintain accurate stock levels and financial tracking.


Explanation:

Sheila, as a warehouse manager using a perpetual inventory system, would need to update inventory records in scenario D, when an unsold inventory item is discarded. This action would require a decrease in the inventory count to reflect the removal of the item from stock. Updating inventory records is crucial for accurate tracking of stock levels and financial reporting.


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