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Ashton Company uses the perpetual method. The company's inventory account had a $6,600 balance as of December 31, 2016. A physical count of inventory shows

Ashton Company uses the perpetual method. The company's inventory account had a $6,600 balance as of December 31, 2016. A physical count of inventory shows only $5,900 of merchandise in stock at December 31, 2016. The entry to recognize the missing inventory will

increase expense.

all of these answer choices are correct.

increase assets.

decrease cash flow from operating activities.

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