Courtney Company reported total operating expenses of $55,000 on its adjusted trial balances for the year ended November 30, 2013. After the preliminary statements were prepared, the accountant became aware of the following situations:
1. The physical inventory count revealed that inventory costing $4,000 was damaged and needed to be scrapped.
2. Sales staff were owed $2,500 of sales commissions relating to November sales. The sales commissions were paid in December.