I need typed answer with explanation otherwise I will report to your answer and don't use AI BOT. Explain why reaming options are incorrect I will thumb up.

Which of the following statements is correct concerning the operations of a merchandiser who chooses to use a periodic inventory system?

a) Inventory reported on the balance sheet is adjusted based on a physical inventory count.

b) The merchandiser is not concerned about inventory shrinkage.

c) Cost of goods sold is recorded when a sale is made.

d) The merchandiser is only allowed to use FIFO to calculate its ending inventory cost.

e) Merchandise inventory is always up to date.