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There are a plethora of reasons why the dollar amount of a company's inventory in the accounting records differs from the dollar value of the
There are a plethora of reasons why the dollar amount of a company's inventory in the accounting records differs from the dollar value of the physical inventory count. Obviously theft by employees and customers is one reason for the disparity, but there are many others. In one-paragraph discuss another reason why the physical inventory count may not agree with the amount of inventory in the accounting records. Then discuss a strategy or internal control measure to put in place to safeguard against that loss.
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