CLO 3.1 (K1, K2) (5 Marks) Evaluate and record transactions for inventory and receivables. 1. 1. The key to successful business operations is effective inventory management. Do you agree? Explain. 2. An item must possess two characteristics to be classified as inventory. What are these two characteristics? 3. (a) Brandt Company ships merchandise to England Corporation on December 30. The merchandise reaches the buyer on January 5. Indicate the terms of sale that will result in the goods being included in (1) Brandt's December 31 inventory and (2) England's December 31 inventory. (b) Under what circumstances should Brandt Company include consigned goods in its inventory