Maintains perpetual inventory records

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Reference no: EM13866576

Armstrong Company maintains perpetual inventory records. The company's inventory account had a $6,500 balance as of December 31, 2014. On that date, a physical count of inventory showed only $6,100 of merchandise in stock. The write-down to recognize the missing inventory will

1) increase assets.

2) increase expense.

3) increase equity.

4) have no effect on net income

Reference no: EM13866576

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