=+Alice is also concerned about lost sales while a physical inventory is being taken.

Hammer & Nails Hardware currently takes a physical inventory twice a year. To minimize distractions, the store is closed on the day inventory is taken. Alice believes that closing the store is the only way to get an accurate inventory count.

Will switching to a perpetual inventory system strengthen Hammer & Nails Hardware’s control over inventory items? Will switching to a perpetual inventory system eliminate the need for a physical inventory count? Explain.

Fly Away Luggage Shop is a small retail establishment located in a large shopping mall. This shop has implemented the following procedures regarding inventory items: