D is corrent because if sales had not been recorded, the perpetual inventory records would not reflect the shipment of inventory resulting in inventory overstatement per the books.
A is incorrect because if purchases had not been recorded, the physical inventory would be greater than the perpetual inventory records.
B is incorrect because failure to record purchase discounts would not affect quantities in the perpetual records. Failure to record purchase discounts would result in the overstatement of inventory value, not inventory quantities.
C is incorrect because if sales returns had not been recorded, the physical inventory would be greater than indicated in the perpetual records.
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