Alven Department Store uses a perpetual inventory system.

At year-end, the balance in the Inventory control account is $1,200,000.

Assuming that the inventory records have been maintained properly, a year-end physical inventory count:

a.

Probably will indicate less than $1,200,000 in merchandise on hand

b.

Probably will indicate more than $1,200,000 in merchandise on hand

c.

Is needed to establish the ending inventory, as the $1,200,000 balance in the Inventory control account represents the beginning inventory.

d.

Is unnecessary